LONDON (Alliance News) - Flybe Group PLC Monday said it has completed Project Blackbird after resolving its last major legacy issue through the redeployment of its remaining surplus Embraer E195 aircraft.
Flybe's Project Blackbird involved Flybe finding ways to redeploy each of the 14 aircraft in its E195 fleet.
The European airline said the remaining six E195s will be redeployed from March 2016. One aircraft will replace a Q400 aircraft at Newquay under an agreement with Cornwall Council, two will be based at Doncaster Sheffield Airport, and three will operate at Birmingham and Manchester airports.
Of the original fleet of 14 E195 aircraft, five were handed back to lessors earlier in the year, two have been based at Cardiff Airport since March, and one is to be based in Exeter serving Exeter and Norwich airports starting in March 2016.
Flybe said that completion of the project delivers a GBP40 million mitigation versus its previously indicated obligation of GBP80 million over the remaining term of the aircraft leases. The company expects a financial cost of GBP20 million this year for the remaining six aircraft, reducing to GBP10 million next year, GBP6 million the year after than and then GBP4 million the following year.
"This announcement marks the definitive completion of Project Blackbird. The arrangements announced today are a superb result for all Flybe stakeholders. They avoid the need for any upfront payment, enhance UK regional connectivity and have mitigated exposures to Flybe. With the last of our major legacy issues behind us, we can now focus all our attention on becoming a world-class regional airline," Chief Executive Saad Hammad said in a statement.
Shares in Flybe were trading up 4.9% at 89.95 pence Monday morning.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
Copyright 2015 Alliance News Limited. All Rights Reserved.
