Flybe, Finnair Resume European Airline Consolidation
The effort by UK low-fare regional Flybe and Finnair to break through European structural barriers to consolidation took the form of an agreement last mont

The effort by UK low-fare regional Flybe and Finnair to break through European structural barriers to consolidation took the form of an agreement last month between the airlines 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 AB, 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 the lack of capital availability. Flybe, however, raised some £60 million ($100 million) late last year in an IPO meant, first, to fund fleet expansion and, second, to position it for any potentially attractive airline acquisitions, or “strategic arrangements with other European airlines.”