Category Archives: Flybe Nordic

Finnair acquires Flybe Nordic and Flybe Finland, will introduce Wi-Fi in the fall

Finnair (Helsinki) as planned, has completed its acquisition of Flybe Nordic (Helsinki) and its Flybe Finland (formerly FinnComm Airlines) (Helsinki) airline subsidiary. Finnair issued this statement:

Finnair has acquired Flybe UK Ltd’s 60% ownership of Flybe Nordic for a transaction price of 1 euro, and Flybe Nordic will transfer to Finnair’s ownership on an interim basis. The transaction has been closed on March 31, 2015. Finnair continues discussions about the continued ownership of Flybe Nordic. Finnair and StaffPoint Holding Ltd and G.W. Sohlberg Ltd. signed on January 7, 2015 a Memorandum of Understanding about an arrangement according to which Staffpoint and GWS would own together 60% of Flybe Nordic shares.

“Last November Finnair and Flybe UK decided to discontinue their Flybe Nordic co-operation and agreed, that Flybe UK will sell its 60% ownership in the company to a potential new majority shareholder or Finnair. While the discussions with Staffpoint and GWS still continue, Finnair will now acquire Flybe UK’s share of Flybe Nordic. We hope to sign a new share purchase agreement in the coming months,” says Pekka Vauramo, Finnair CEO.

Flybe Nordic owns fully the Finnish subsidiary Flybe Finland, which operates with a total of 26 ATR and Embraer aircraft a substantial part of Finnair’s domestic and European routes as purchase traffic. Flights operated by Flybe Finland will continue normally.

“Finnair aims to find together with its partners a business model that would enable the development of regional flying in a financially sustainable way. We will take an important step to this direction at the beginning of May, when all routes operated by Flybe Finland at their own commercial risk will become a part of Finnair’s contract flying arrangements, as we have communicated earlier. Flybe Finland has also implemented several internal measures to improve the company’s financial position,” says Vauramo.

The ownership change of Flybe Nordic does not have any immediate impact on Finnair’s result. Finnair continuously monitors the balance sheet valuation related to the Flybe Finland cooperation and will inform about possible financial impacts in more detail in connection with its interim review on 7 May, 2015.

In other news, Finnair has announced it will introduce its first onboard Wi-Fi service in autumn 2015.

Finnair Board of Directors has approved an investment program for bringing Wi-Fi connectivity to the majority of Finnair’s wide-body and narrow-body fleet. The total value of the investment is approximately 30 MEUR.

Finnair will introduce its first onboard Wi-Fi service in autumn 2015, with the arrival of the first Finnair A350 XWB aircraft. In 2016, the company will start Wi-Fi installations in Finnair’s Airbus A330 long-haul aircraft as well as its European short-haul Airbus fleet. Installations are expected to be completed by 2018.

Finnair aircraft slide show: AG Airline Slide Show

Copyright Photo: OSDU/AirlinersGallery.com. ATR 72-212A (ATR 72-500) OH-ATL (msn 851) of Flybe Finland lands at Pulkovo Airport in St. Petersburg, Russia.

AG A new gallery added

 

Advertisements

The sale of Flybe Nordic’s 60% share formerly held by Flybe is approved

Finnair (Helsinki) has announced the sale of Flybe’s (Exeter) 60% share in Flybe Nordic has been approved. The airline issued this statement:

The Finnish Competition and Consumer Authority has approved the transaction in which Flybe UK Ltd’s 60% ownership of Flybe Nordic venture will be transferred to StaffPoint Holding Ltd and G.W. Sohlberg Ltd (GWS) . The letter of intent on this transaction was announced on January 7, 2015. Upon completion of the sale, StaffPoint’s ownership in the joint venture will be 45%, GWS’s 15% and Finnair’s 40%. The transaction is expected to be closed in early February 2015.

Flybe Nordic owns fully the Finnish subsidiary Flybe Finland, which is in charge of Finnair’s regional airline operations. Flybe Finland currently operates to a number of domestic and European destinations from Helsinki on behalf of Finnair on a contract-flying basis. In addition, Flybe Finland operates to five domestic destinations as well as Tartu, Estonia and Norrköping, Sweden at its own commercial risk.

Will the Flybe Finland brand now be changed to a new name? Flybe Finland was formerly FinnComm Airlines.

Copyright Photo: Ton Jochems/AirlinersGallery.com. Flybe Finland’s ATR 72-212A (ATR 72-500) OH-ATG (msn 757) sits on the ramp at the Helsinki (HEL) base.

AG Bottom Ad Bar

Video: A time lapse full flight window view of a flight from Edinburgh to Birmingham, onboard Flybe Embraer ERJ 175 G-FBJE, operating flight BE 852 on October 31, 2014.

Flybe to cut another 500 jobs as it becomes profitable again in the first half

Flybe (Exeter) plans to cut another 500 jobs after it posted its first half-year profit in two years.

Read the full report from Reuters: CLICK HERE

The company issued this financial statement:

Results for the six months to September 30, 2013:

Flybe announces a significantly improved financial performance under its new management team.  In addition, a new phase of efficiency improvements announced today will secure a strong base for future growth.

Key financial highlights
      H1 2013/14£m          H1 2012/13£m               Change%
Total revenue under management * 477.3 396.3 20.4
Less: joint venture revenue (126.2) (55.5) 127.4
Group revenue 351.1 340.8 3.0
Adjusted profit/(loss) before tax, restructuring and surplus capacity costs and revaluation on USD aircraft loans ** + 12.2 (2.3)                     N/M
Adjusted profit/(loss) before tax and restructuring *** + 17.1 (1.6)                     N/M
Profit/(loss) before tax + 13.8 (1.6)                     N/M
Profit/(loss) after tax + 13.6 (1.6)                     N/M

*   Includes Flybe’s joint venture, Flybe Finland.

** Adjusted profit/(loss) before tax, restructuring and surplus capacity costs and revaluation on USD aircraft loans defined as profit/(loss) before tax, restructuring and surplus capacity costs of £4.1m (2012/13: £nil) and revaluation gains on USD aircraft loans of £5.7m (2012/13: £0.7m).  Surplus capacity costs represent the costs incurred in H1 2013/14 relating to capacity that is considered by management to be surplus as a result of the restructuring decisions.

***      Adjusted profit/(loss) before tax and restructuring defined as profit/(loss) before tax and restructuring costs of £3.3m (2012/13: £nil).

+   H1 2012/13 has been restated for the impact of adopting the revised requirements of IAS 19 Employee Benefits as detailed further in Note 2 to the condensed financial statements. The replacement of the interest cost and expected return on plan assets with a new interest charge on the net defined benefit liability led to a £0.3m increase in the reported loss for that period.

Results summary

1. First two phases of the Turnaround Plan on track to deliver savings of £40m this year and £45m in 2014/15.

2. A 20.4% increase to £477.3m (H1 2012/13: £396.3m) in revenue under management (including Flybe Finland, the joint venture with Finnair) largely driven by increased contract flying activity in Finland.

3. A 3.0% increase in group revenue to £351.1m.

4. A £13.8m profit before tax (H1 2012/13: loss of £1.6m).

5. A £10.5m operating cash inflow before increase in restricted cash and restructuring costs (H1 2012/13: £1.6m)

Operational highlights (H1 2013/14)

UK Airline:

–    6.2 million scheduled seats flown, in line with last year.

–    5.6% increase in passengers to 4.3 million.

–    3.6ppts increase in load factor to 68.6%.

–    0.9% increase in passenger revenue per scheduled seat to £50.35 (H1 2012/13: £49.92).

–    1.3% increase in total revenues to £328.2m.

–    1.3% decrease in costs per seat to £51.30.  On a constant currency and fuel price basis, costs per seat decreased by 3.1%.

–    4.7% increase in UK regional sector share for the Flybe brand to 55.1%.

Flybe Finland:

–    26.4% of Flybe’s revenue under management (H1 2013/14: £126.2m; H1 2012/13: £55.5m).

–    £110.6m contract flying revenue (H1 2012/13: £36.7m)

–    84.6% increase to 2.4 million in total seats flown, of which white label flying totalled 2.0 million (H1 2012/13: 0.8 million).

Turnaround update

Flybe aims to become the best local airline in Europe delivering unrivalled regional connectivity.

Flybe will have two engines of growth:

A regional branded airline giving a nimble and customer-friendly, scheduled service for both business and families.  This brings people together within a country and connects people in the regions to international carriers at metropolitan airports.

A regional white label model where Flybe will become the leading regional provider for mainstream European airlines.

The already announced Phase 1 and 2 cost savings are being successfully implemented.

Major management and organizational change: new Chairman and Chief Executive Officer have been appointed.  Senior executive appointments well advanced, including a new Chief Commercial Officer already in place.

Flybe’s operations have been reorganized into a single management structure.

An Immediate Action plan is being announced today and is already being implemented with three elements:

1.   Optimise configuration: rationalise route network, review fleet mix, remove surplus capacity and improve aircraft and crew utilisation.

2.   Reduce costs further: all aspects of the business are being reviewed to drive further savings.

3.   Improve commercialisation: optimise pricing and revenue management, refocus network development, strengthen route management, step change marketing impact and develop trading partnerships.

This will deliver further benefit of £7m this year and £26m next year with around 500 proposed redundancies and estimated one-off and surplus capacity costs of £14m this year plus a further £27m in 2014/15.

Finnair JV is now profitable; further improvements are being targeted by enhancing operational delivery, reducing scheduled risk flying losses and embedding ‘lean manufacturing’ techniques.

Update: According to Reuters, majority shareholder Rosedale Aviation Holdings has sold its entire 48.1 percent stake in the airline to institutional investors.

Read the full report: CLICK HERE

Copyright Photo: Antony J. Best/AirlinersGallery.com. Embraer ERJ 190-200LR (ERJ 195) G-FBEB (msn 19000057) lands at Southampton.

Flybe: AG Slide Show

Flybe Nordic to fly 12 Embraer 190s for Finnair

Flybe (Exter) has announced that Flybe Nordic (Helsinki), formerly Finncomm Airlines, has signed a Memorandum of Understanding (MOU) with Finnair (Helsinki) to operate 12 Embraer ERJ 190-100LRs for Finnair under a contract flying arrangement. Under the terms of the MOU, the long term ERJ 190 contract will commence on October 28, 2012. Finnair will transfer the aircraft to Flybe Nordic. The aircraft will fly for Finnair on a number of European short haul routes, taking advantage of Flybe Nordic’s competitive cost base.

With this agreement the number of aircraft flown by Flybe Nordic will reach 28, double the number flown when the business commenced operations in August 2011, of which 20 will be flying under contract for Finnair.

Flybe Nordic has been flying eight aircraft on a contract basis for Finnair since August 2011.

Finn Comm Airlines adopted the Flybe brand on October 30, 2011.

Copyright Photo: Ton Jochems. It is unclear if the 12 E190s will retain the Finnair brand or adopt the Flybe brand.

Finnair:

Flybe:

Finncomm Airlines (Finnish Commuter Airlines) becomes Flybe Nordic

Finncomm Airlines (Finnish Commuter Airlines) (Helsinki), as planned, was turned over to its new owners Flybe (Exeter) (60%) and Finnair (Helsinki) (40%) and became Flybe Nordic (Flybe.fi) on October 30, 2011 with the start of the winter season.

The new owners are adding new routes including the Helsinki-Mariehamn route in the Aland Islands. Flybe will now offer a choice of two flights a day and 22 flights a week on the route

To recognize the start of its new route and highlight its commitment to the Åland Islands, Flybe announced its intention to name an aircraft in honor of the region. The airline will be giving people the opportunity to suggest a suitable name, and details of the plane-naming competition will be announced shortly.

Flybe’s extensive regional winter schedule features a total of 25 routes, including 10 that are brand new, giving passengers a choice of up to 500 flights a week. Flybe’s growing network from Helsinki also offers convenient links for businesspeople and tourists between Åland and important destinations like Karleby-Jakobstad, Kemi-Torneå and Skellefteå.

The nice other new routes in Flybe’s network are as follows:

Helsinki – Jyväskylä (up to 3 daily)
Helsinki – Tartu, Estonia (6 per week)
Helsinki – Trondheim, Norway (4 per week)
Helsinki – Umea, Sweden (4 per week)
Tampere – Tallinn, Estonia (up to 2 daily)
Turku – Tallinn (up to 2 daily)
Vaasa – Tallinn (6 per week)
Oulu – Tallinn (6 per week)
Tallinn – Stockholm Bromma, Sweden (up to 3 daily)

Copyright Photo: Yannick Delamarre. The Finncomm brand is being retired. All aircraft are adopting the Flybe brand.

Helsinki Route Map:

Finncomm Airlines is acquired by Flybe and Finnair

Finncomm Airlines (Finnish Commuter Airlines) (Helsinki) was acquired by Flybe (Exter) and Finnair (Helsinki) on August 18. The new entity will be rebranded as Flybe Nordic (flybe.fi) on October 30, 2011.

Flybe now holds a 60 percent majority stake in Flybe Nordic, holding a 60 percent stake, with Finnair holding the remaining 40 percent. Flybe will have three seats on the new airline’s board of directors with Finnair having the other two.

The new owners have announced Flybe Nordics’s expanded route network. The expansion features a total of 24 regional routes offering a choice of up to 416 flights a week. This includes all existing routes previously operated by Finncomm together with the addition of nine brand new routes.

This extended program features four new routes from Helsinki, four from key regional cities in Finland and one between Sweden’s Stockholm Bromma airport and Estonia’s capital city, Tallinn. Four of the new routes offer multiple daily frequencies each with a choice of up to three flights a day.

The nine new routes are as follows:

Helsinki — Mariehamn, Aland (twice daily)
Helsinki – Tartu, Estonia (6 times per week)
Helsinki – Trondheim, Norway (4 per week)
Helsinki – Umea, Sweden (4 per week)
Tampere – Tallinn, Estonia (three times daily)
Turku – Tallinn* (twice daily)
Vaasa – Tallinn* (6 per week)
Oulu – Tallinn* (6 per week)
Tallinn – Stockholm Bromma, Sweden (three flights daily)

*Flights start November 14, 2011.

Copyright Photo: Yannick Delamarre.

Finncomm Slide Show: CLICK HERE

New logo: