LONDON – For the past week, Flyr’s future has been at risk, with the airline having to collect 430mil NOK in equity, which they did not get before the deadline yesterday. An alternative offer from investors was offered, and has on Wednesday morning been accepted. As a result of this crisis, Flyr signed an LOI with an undisclosed European airline, for wet-lease of one aircraft.
The wet lease agreement
Prior to the deadline the carrier had yesterday of collecting the needed equity, it was announced that Flyr (FS) had signed a Letter of Intent (LOI), to wet-lease one aircraft to an undisclosed European airline. There are also discussions about wet-lease for a second aircraft.
With Flyr being in a hard situation financially, the carrier looks at the wet-lease agreement as a catalyst to generate a positive cash flow for the company, and are actively pursuing possibilities like these in the market, for this winter season.
As a result of a harsh winter in the making, the company decided to cut down on less profitable routes, ground half their fleet, as well as laying off half of their staff, for a five month period.
The aircraft which the wet-lease agreement regards to, is one of the temporarily grounded aircraft. Flyr operates six Boeing 737-800 NG’s, along with another six Boeing 737 MAX 8 aircraft, of which the MAX aircraft are the most common ones currently in use with the airline.
The knowledge AviationSource has about the currently grounded aircraft, the 737 NG’s, makes it reasonable to believe that the Boeing 737-800NG is the aircraft type that the wet-lease-agreement regards to.
On the decision about the wet-lease agreement, Brede Huser, Chief Financial Officer (CFO) at Flyr, stated:-
“This wet lease agreement provides a compelling opportunity to generate positive cash flows from aircraft that we were not planning to fully utilize in the coming winter. The agreement strengthens Flyr’s financial position as we continue to roll out our updated strategy.”
Alternative offer accepted
On Wednesday morning, Flyr publicly announced that they have accepted the alternative offer from investors, which they were given yesterday after the aqcuisition of 430mln NOK in equity, failed.
Through the agreement with investors, the company will work on collecting 700mln NOK, through four different steps. Following the agreement, stock has also been on the rise, according to economy news station E24.no
LOI with Skinetworks
Following the announcement of the agreement with investors, Flyr also announced the signing of a new Letter of Intent (LOI), with Danish Skinetworks, to operate charter flights on their behalf.
The flights will originate from two Swedish cities, being Stockholm and Gotheburg, to destinations Torino and Innsbruck, from January to March, 2023.
In a statement from Thomas Ramdahl, Commercial Director at Flyr, comments:
“We’re really happy that Skinetworks has trust in us as a company and our product, and we look forward to agreeing on an agreement that will offer the customers of Skinetworks, the good Flyr-experience.”
Martin Aadal Nielsen, the COO of Skinetworks, also commented, saying:
“At Skinetworks, we strive to give our customers fantastic skiing-experiences and seamless travel. We are also depending on our partner’s focus of putting the customers in centre, and this is what we experience Flyr is doing.”