Airline Flybe has confirmed that its biggest shareholder, Hosking Partners, has moved to eject chairman Simon Laffin and ordered an investigation into its takeover.

The airline, which operates flights from Ronaldsway Airport to several UK destinations, said yesterday [Monday] that the investor has requested the company convene a general meeting to consider resolutions to replace Mr Laffin with Eric Kohn.

Flybe - which is being taken over by Virgin Atlantic, Stobart Group and investment firm Cyrus Capital Partners - said in a stock market update that Hosking also wants Mr Kohn to investigate the sale process.

Hosking objects to the deal, which will see Flybe sold for 1p a share.

The airline said it has ’full confidence’ in Mr Laffin and believes that ’any independent scrutiny of its conduct will support the board’s decision-making’.

It said: ’The board reaffirms that it has acted at all times in the interests of its shareholders and all its stakeholders, through an extremely difficult and challenging period.

’The board continues to have full confidence in its chairman, Simon Laffin, and believes that any independent scrutiny of its conduct will support the board’s decision-making.’

Under the terms of the deal, the buyers - known collectively as the Connect Airways consortium - will pay £2.8 million to take control of the main trading company Flybe and the online arm Flybe.com in a deal set to complete by February 22, while later concluding the purchase of the wider holding company for 1p a share.

However, Hosking has expressed concerns that Flybe allowed a false market to develop by failing to notify the City of its financial position quickly enough.

Flybe confirmed last Thursday that shareholders would not be able to vote on the initial disposal of the main trading assets of the airline, but only the 1p-a-share sale of the remaining holding company.

Under the takeover plans, the airline will be combined with Stobart Air in a joint venture.

Cyrus will own 40% of the new company, while Virgin and Stobart will take 30% apiece.

The airline says it is going ahead with plans to re-open an Isle of Man base on April 1.

And it said: ’Customers can continue to book flights with us. As previously announced, with effect from March 31, Flybe will operate its 2019 summer schedule from the Isle of Man as published with its own-operated 78-seat Bombardier Q400 aircraft.

’Flybe looks forward to continuing to serve the island community and to welcoming customers back on board its own operated flights this summer.’

Flybe’s plans to establish a full base at Ronaldsway would not be affected by the takeover, the company told the Isle of Man Examiner two weeks ago.