Flybe, Finnair Resume European Airline Consolidation

The effort by UK low-fare regional airline Flybe and flagcarrier Finnair to break through European structural barriers to consolidation took shape last wee

Under the terms of the plan by Flybe and Finnair to jointly acquire Finnish Commuter Airlines, Finnair will buy the FCA fleet of nine ATR 72 aircraft at market price and lease them back to FCA. (Photo: ATR)

By Gregory Polek • Senior Editor

July 11, 2011

The effort by UK low-fare regional airline Flybe and flagcarrier Finnair to break through European structural barriers to consolidation took shape last week with an agreement to jointly acquire Finnish Commuter Airlines (FCA), a Finnish regional carrier owned by Finncomm Oy. The companies plan to create a new joint venture called Flybe Nordic, 60-percent owned by Flybe and 40 percent by Finnair.

Consolidation in the European airline industry has slowed in recent years for various reasons, not least of which centers on the lack of capital availability and market uncertainty. Flybe raised £60 million pounds ($98 million) late last year in an IPO share offering meant, first, to fund fleet expansion and, secondly, to position it for any potentially attractive airline acquisitions, or “strategic arrangements with other European airlines.”

The rest of this article continues for AIN Members with the full report, analysis and background. The rest of this article continues for AIN Members with the full report, analysis and background. The rest of this article continues for AIN Members with the full report, analysis and background. The rest of this article continues for AIN Members with the full report, analysis and background. The rest of this article continues for AIN Members with the full report, analysis and background.

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