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Skip to the content EY Homepage Close search Search Close search See all results in Search Page NO RESULTS HAVE BEEN FOUND -------------------------------------------------------------------------------- RECENT SEARCHES -------------------------------------------------------------------------------- (container) See all results for -------------------------------------------------------------------------------- TOPICS -------------------------------------------------------------------------------- GENERAL -------------------------------------------------------------------------------- PEOPLE -------------------------------------------------------------------------------- TRENDING * Can we avoid gridlock on the road to carbon neutrality? 12 Oct 2021 Energy and resources * How leaning into transfer pricing transformation helps manage tax risk 4 Oct 2021 Supply chain * Are you ready to reframe operations for resilience and sustainability? 11 Oct 2021 Consulting Open Navigation MenuClose 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negative, a major milestone in its carbon ambition EY has reached this target by reducing absolute emissions, and then offsetting or removing more than the remaining amount of EY emissions, every year. Play video 2:37 Close Video Player is loading. Play Video Play Mute Current Time 0:00 / Duration 2:37 Loaded: 3.79% 0:00 Stream Type LIVE Seek to live, currently behind liveLIVE Remaining Time -2:37 1x Playback Rate Chapters * Chapters Descriptions * descriptions off, selected Subtitles * subtitles settings, opens subtitles settings dialog * subtitles off, selected * English Audio Track * en (Main), selected Picture-in-PictureFullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. TextColorWhiteBlackRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentBackgroundColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentTransparentWindowColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyTransparentSemi-TransparentOpaque Font Size50%75%100%125%150%175%200%300%400%Text Edge StyleNoneRaisedDepressedUniformDropshadowFont FamilyProportional Sans-SerifMonospace Sans-SerifProportional SerifMonospace SerifCasualScriptSmall Caps Reset restore all settings to the default valuesDone Close Modal Dialog End of dialog window. Close Modal Dialog This is a modal window. This modal can be closed by pressing the Escape key or activating the close button. FEATURED INSIGHTS We're asking #BetterQuestions Swipe to discover WHY SIGNIFICANT FISCAL LOOSENING IS UNLIKELY IN THE AUTUMN BUDGET Read more Close card ARE YOU READY TO REFRAME OPERATIONS FOR RESILIENCE AND SUSTAINABILITY? Read more Close card WHY CLEANTECH INVESTMENTS IN THE UK ARE ENCOURAGING FOR FUTURE GROWTH Read more Close card THREE KEY CRYPTOCURRENCY TRENDS FAMILY OFFICES SHOULD BE AWARE OF Read more Close card WHY MEETING BOARDROOM TARGETS IS ONLY ONE STEP TOWARDS GENDER EQUALITY Read more Close card HOW L&D TEAMS CAN REIMAGINE LEARNING IN A NEW ERA OF WORK Read more Close card WHEN TRANSFORMATION IS ESSENTIAL, HOW CAN STRATEGY BE DIFFERENTIAL? Read more Close card SIX QUESTIONS INSURERS SHOULD ASK TO EVOLVE THEIR TAX OPERATING MODEL Read more Close card HOW THE UK CAN BECOME AN ELECTRIC VEHICLE WORLD LEADER Read more Close card WILL YOU OVERLOOK A FAST-GROWTH OPPORTUNITY, OR OVERSEE IT? Read more Close card View more stories COP26 Helping you reframe COP26 outcomes as an agenda for business action and impact. Explore more REAL-WORLD STRATEGY EY-Parthenon – helping CEOs reframe their future today with real-world strategies for tomorrow. Explore Case Study The better the question. The better the answer. The better the world works. Case Study HOW TO SELL A TRAVEL BUSINESS WHEN NO ONE IS TRAVELLING FLYBE BECAME THE FIRST UK AIRLINE TO BE RESCUED FROM INSOLVENCY AFTER EY-PARTHENON PROTECTED THE STRUGGLING BUSINESS AND FOUND A BUYER. Case Study The better the question. The better the answer. The better the world works. Case Study HOW DO YOU RESCUE A GROUNDED AIRLINE WHEN EVERYTHING IS UP IN THE AIR? EY-PARTHENON WAS APPOINTED TO HANDLE FLYBE’S ADMINISTRATION AFTER A BUILD-UP OF PRESSURE ON THE STRUGGLING AIRLINE. HOW EY CAN HELP RESHAPING RESULTS We help you respond to the challenges of COVID -19, providing trusted leadership in these urgent, critical and complex situations to help you recover and preserve value for a better future. Read more The past 18 months have certainly been challenging for the travel industry, but it was events prior to the pandemic that led to the EY-Parthenon Turnaround & Restructuring Strategy team working with Flybe for the first time. The independent airline, founded in 1979, played an important role in the UK economy, providing valuable connectivity between the regions through airports such as Birmingham, Southampton, Manchester, Exeter, Edinburgh and Belfast. As of January 2020, Flybe operated 38% of all UK domestic flights. But in January 2019, it was in financial difficulty and had entered discussions with several parties about a possible sale. The offers Flybe received were lower than expected and the EY-Parthenon team was engaged to carry out contingency planning in case the company had to be put into administration. The team already had extensive experience of the aviation sector, having worked with companies including BMI, Monarch, Alitalia and Thomas Cook. However, shortly afterwards, a sale was agreed to a consortium consisting of Virgin Atlantic, Stobart Aviation and DLP Holdings. With the threat of administration over, the EY-Parthenon team withdrew. Exactly a year later, Flybe contacted EY-Parthenon again. The COVID-19 pandemic had started to affect the business and flight bookings were falling. Several other issues were also having a negative impact on the business, including rising fuel costs, currency volatility, market uncertainty and Air Passenger Duty liabilities. The company had been talking to the Government and shareholders consortium about a £100mn loan, but as travel restrictions were imposed and devastation to the airline industry grew, further funding became improbable. Flybe had no choice but to file for administration in March 2020. Alan Hudson, Simon Edel, Joanne Robinson and Lucy Winterbourne of EY-Parthenon were appointed to handle the process, conscious that no UK airline had ever been rescued from an insolvency. Case Study The better the question. The better the answer. The better the world works. Case Study URGENT ACTION AND STRATEGIC THINKING EY-PARTHENON MOVED QUICKLY TO STABILISE THE SITUATION AND CREATE CONDITIONS THAT WOULD MAKE IT POSSIBLE TO SELL THE BUSINESS. HOW EY CAN HELP ABOUT EY-PARTHENON EY-Parthenon is one of the largest global strategy consulting organizations, with more than 6,500 professionals. We help CEOs and business leaders design and deliver transformative strategies across the entire enterprise, to help build long-term value to all stakeholders. Read more The role of an administrator is to rescue a company, if possible, and if not, to recover as much value as they can for the company’s creditors. But from day one, the EY-Parthenon team had more immediate concerns. By 11 p.m. the night before Flybe entered administration, the EY-Parthenon and Flybe leadership teams agreed to ground their fleet of aircraft so that, in the early hours of the next morning, the administration could be affected. Meanwhile, thousands of passengers were travelling to airports expecting to board a Flybe flight that day, so the first challenge the EY-Parthenon team faced was a logistical one. After they had quickly formulated an operational plan, they dispatched members of EY-Parthenon staff to 26 airports across the UK and Europe to help brief Flybe’s 2,200 employees, and communicate to over 20,000 passengers that their flights had been cancelled. A key priority was to negotiate with the Civil Aviation Authority (CAA) about Flybe’s operating licence and air operator certification. Without these, Flybe would lose access to valuable assets and vital permissions to function, including UK and EU airport slots. Finally, the EY-Parthenon team had to contact all of Flybe’s aircraft lessors, that is the companies from whom they leased their aircraft and engines. Naturally, the lessors wanted to know where their planes were parked, how they were going to be maintained and when they would be paid what they were owed. To add to the complexity, within two weeks of the administration filing, the UK went into lockdown and the EY-Parthenon and Flybe teams were required to work from home. Without the ease of face-to-face contact, the EY-Parthenon teams were navigating new and unfamiliar practical and operational challenges on a daily (if not hourly) basis. As a solution, they transitioned the EY-Parthenon and Flybe teams to a stable online platform, from which they could interact and continue their work. This platform enabled vital asset and property inspections via video-conferencing and, ultimately, the online sale process of an international M&A. “Carrying out an online administration was a first,” says Simon Edel, EY-Parthenon Turnaround & Restructuring Strategy Partner. “The key to a successful administration is usually founded on building essential client and stakeholder relationships face-to-face’. This was not a luxury available to us, but we were able to react and adapt quickly.” CREATING THE BASIS FOR A SALE With the immediate priorities addressed, the EY-Parthenon team could start thinking strategically, as Joanne Robinson, EY-Parthenon Turnaround & Restructuring Strategy Partner explains: “There was a focus on what short-term sources of liquidity we could access and monetise. We needed to have some lifeblood in the administration to run a marketing process and see if there was a better outcome than the liquidation of the group.” This led to major milestones like the sale of a subsidiary called Flybe Aviation Services, which held the strategically important maintenance contract for RAF Brize Norton, and the sale of the airline’s training academy in Exeter, which will now be a hub for tertiary-level skills training by Exeter College. Credit card acquirers had also reserved large amounts of cash collateral from Flybe’s former customers, in case they ever needed to fulfil refund claims for cancelled flights. These funds were a key source of liquidity for the administration and, through close collaboration with the credit card acquirers, EY-Parthenon managed to negotiate their release sooner than expected. The EY-Parthenon team successfully reactivated Flybe’s maintenance licence with the CAA, which allowed it to run a maintenance, repair and overhaul business for the aircraft lessors and others. This generated trading income and helped preserve the value of each aircraft until it was collected. Having stabilised the business, the EY-Parthenon team was able to run a full global M&A process to sell the airline. “Within 48 hours of starting, we had contacted over 70 airlines across the globe,” says Mike Parr, EY-Parthenon Transaction Strategy & Execution Partner. “That got us sufficient interest to keep the airline alive in a challenging market, where consumers were adapting to staying at home and not flying.” The M&A process attracted nine credible expressions of interest and the ultimate sale of Flybe to a new company, called Flybe Ltd and, as Edel explains, “the sale provided the possibility for growth, new jobs and the chance for Flybe Ltd to be a valuable economic contributor to regional communities across the UK and EU.” In the context of the Government’s ‘levelling up’ agenda and its emphasis on restoring regional connectivity, the prospects are good. Case Study The better the question. The better the answer. The better the world works. Case Study EXPERIENCE, CAPABILITY AND TRUST BY MANAGING AND NEGOTIATING WITH STAKEHOLDERS, EY-PARTHENON CREATED THE RIGHT CONDITIONS FOR AN UNPRECEDENTED SALE OF AN INSOLVENT AIRLINE. HOW EY CAN HELP RESTRUCTURING AND TURNAROUND STRATEGY The COVID-19 pandemic will require many organizations to significantly reshape their strategy. The next wave of strategic change must focus on financial and business restructuring or a turnaround strategy that can be implemented with speed and certainty. We provide trusted leadership in urgent, critical and complex situations to transform, create, preserve and recover value. Read more EY-Parthenon’s work with Flybe is ongoing and has involved more than 150 people from seven different sub-service lines. “It’s a multidisciplinary team that has touched almost every part of the firm,” says Edel, adding that this is one of our key strengths. “We’re a trusted brand, we’ve got the depth of experience in the aviation sector, we’ve got the breadth of capability and we’re trusted by all around the table.” Looking back on the past year, Parr reiterates the complexity of the task the EY-Parthenon team was faced with. “The number of stakeholders that you need to manage to keep an airline alive is phenomenal,” he says. “It starts with the employees and creditors, but there were also the regulators, or CAA, other governmental departments, airport slot coordinators, and suppliers. “Being able to manage that and keep all these moving parts aligned and in sync was difficult, but what we achieved has ultimately facilitated the rescue of an airline, which stands to make an important contribution to local economies and the air travel sector as each rebuild after the end of the pandemic.” Close DIRECT TO YOUR INBOX Stay up to date with our Editor's Picks newsletter. Subscribe FEATURED PRESS RELEASES BORROWING IN SEPTEMBER REMAINED WELL BELOW THE OBR FORECAST – EY ITEM CLUB COMMENTS Although September’s data confirmed that borrowing is on track to come in below the OBR’s 2021-2022 forecast, some of the consequences for the public finances data of a stronger-than-expected economy may be deferred until next year 21 Oct 2021 London GB Annabel Banks CHANCELLOR HAS ‘ROOM FOR MANOEUVRE’ IN THE BUDGET BUT SIGNIFICANT FISCAL LOOSENING IS UNLIKELY, SAYS THE … Ahead of the Budget on 27 October, the Chancellor is likely to benefit from upgraded economic forecasts from the Office for Budget Responsibility (OBR) and a consequent fiscal ‘windfall’, according to the EY ITEM Club Budget Preview Report. 21 Oct 2021 London GB Annabel Banks MORE PRESS RELEASES EY STRENGTHENS UK BUSINESS WITH OVER 1,000 STUDENT HIRES THIS YEAR EY strengthens UK business with over 1,000 student hires this year 20 Oct 2021 INFLATION PICKUP PAUSES AHEAD OF FURTHER WINTER RISE – EY ITEM CLUB CO… Price pressures have intensified over the past month and though the rise in CPI inflation temporarily paused in September, the EY ITEM Club now expects the peak to be significantly above the 3.5% predicted in its last forecast 20 Oct 2021 THE UK DELIVERS ENCOURAGING GREEN INVESTMENT PERFORMANCE, RANKING 2N… The UK attracted one-in-six of all Foreign Direct Investment (FDI) backed ‘cleantech’ projects in Europe in 2020. Cleantech projects include those which involve investment in energy transition, biodiversity, sustainability, or the pursuit of Net Zero targets 19 Oct 2021 Visit the newsroom Feed Join EY in conversation * EY EY UKI @EY_UKI 5h Follow RT @EYnews: Climate change is everybody's business. #COP26 #ReframeTheFuture https://t.co/iSMXZuuvOn https://t.co/sPLWaD6eoJ * Reply * Retweet * Favorite Share your views ON THE AGENDA (11) LONG-TERM VALUE Featured: How will your corporate reporting change to balance all stakeholders’ needs? Discover DIGITAL Featured: Will your digital investment strategy go from virtual to reality? Discover TRUST Featured: How can risk foresight lead to AI insight? Discover BUSINESS GROWTH Featured: Why the UK economy is growing at its fastest pace in 80 years Discover GLOBAL TRADE Featured: How to create long-term value in a fast-changing trading environment Discover PEOPLE AND WORKFORCE Featured: Why Brexit easements highlight the need to fine-tune operating models Discover DIVERSITY AND INCLUSIVENESS Featured: Why meeting boardroom targets is only one step towards gender equality Discover RISK Featured: Are you prepared for change or reacting to it? Discover CYBERSECURITY Featured: Ransomware: to pay or not to pay? Discover INCLUSIVE GROWTH Featured: For CEOs, are the days of sidelining global challenges numbered? Discover BLOCKCHAIN Featured: How public blockchains are making private blockchains obsolete Discover DISCOVER MORE EY search Popular quick links Careers Digital Blockchain Innovation Growth Trust Tax Audit quality Financial Services Next Who we are Legal and privacy Modern slavery statement Connect with us My EY Our locations Site map EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. Facebook LinkedIn Twitter YouTube EY | Assurance | Consulting | Strategy and Transactions | Tax About EY EY is a global leader in assurance, consulting, strategy and transactions, and tax services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com. © 2020 EYGM Limited. All Rights Reserved. EYG/OC/FEA no. ED MMYY This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific advice. 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