Flybe is embarking on a Scandinavian adventure by investing up to £21 million to take control of a Finnish regional carrier.
Flybe, the UK regional carrier that floated last autumn with the intention of raising cash to expand on to the Continent, said that it had acquired Finncomm Commuter Airlines in a 60-40 joint venture with Finnair, the country’s flag carrier.
Finncomm is Finland’s largest domestic airline and handles a total of 900,000 passengers a year, including services around the Nordic and Baltic countries.
Part of the Flybe strategy is to capture the regional market in carrying business travellers to main airport hubs, where they can then connect to international flights.
Jim French, the Flybe chairman and chief executive, says that Flybe Nordic, as the new venture is to be branded, can make returns of 15 per cent in its second full year of ownership as it expands services and routes far into Northern Europe against what he calls the weak flag-carrying competition in the region.
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“Partnerships and acquisitions are at the core of our European growth strategy, which is to export our strong and proven UK business model to become Europe’s leading and most profitable regional airline,” Mr French said.
“Selective acquisitions offer the fastest and most visible route to profitability in the regional airline sector, whilst partnership with Finnair allows us to provide feeder traffic services under an agreed contract, reducing new route risk.”
Flybe has forecast that profits this year will be flat after reporting £22 million in underlying earnings last year.