Flybe Group Regulatory News (FLYB)

Flybe Group plc

("Flybe" or "the Group")

Strengthening of Group Board and Divisional Operating Structure

Flybe Group plc, Europe's largest regional airline, announces the following strengthening of its Board and divisional operating structure, to support the Group's ongoing delivery of its strategy of European expansion and continuing growth in its UK market. These changes are designed to ensure focus, responsibility and accountability for the sound operation and profitable growth of each business division, thereby collectively enhancing the overall profitability of Flybe Group plc.

Mark Chown, currently Deputy Chairman of Flybe and a Trustee of the Walker Trust, one of the Group's major shareholders, in due course will become a full time executive Director of Corporate Strategy at Flybe, and will stand down as a Walker Trustee . The Corporate Strategy role will include responsibility for identifying, evaluating and delivering M&A opportunities. Mark has worked with Flybe since 1996 and has been closely involved with significant strategic developments at the Group, including the acquisition and integration of BA Connect, Flybe's IPO in December 2010 and led the Finncomm acquisition.

In light of his new executive role, Mark will be replaced as Deputy Chairman by Charlie Scott, Flybe's Senior Independent Director since 2006, and formerly Chairman of William Hill plc and CEO of Saatchi & Saatchi plc.

In a significant corporate development, the Group's operating structure is to be organised into three separate operating divisions with immediate effect. This new operating structure will provide the focus required to optimise the wide range of growth opportunities which Flybe has identified in a range of geographies across Europe and will also support continuing growth in Flybe's UK and Aviation Support markets. The Group's operating structure will be organised as follows:

- Flybe UK - comprising the UK domestic and UK-Europe airline business. Andrew Strong, currently the Group's Chief Operating Officer, will become Managing Director of this division. Andrew joined Flybe under its graduate entry programme in 1995 and has developed his career within the Group in a variety of roles, including Director of Aviation Services.

- Flybe Europe - comprising the European airline businesses, including Finncomm and any future acquisitions, as well as organic development. Mike Rutter, currently Chief Commercial Officer of Flybe, will head up this division as Managing Director. Mike joined Flybe in 2003 after working for the likes of ICI and Maytag/Hoover. He has been responsible for the Group's commercial development since 2003, and worked closely alongside Mark Chown in delivering the Finncomm acquisition.

- Flybe Aviation Support- comprising the MRO and Training businesses supporting Flybe's airline divisions and serving third party customers. John Palmer, who joined Flybe in 2006 from Virgin Atlantic and is currently Director of Airline Operations, will become Managing Director of Flybe Aviation Support.

Mark Chown, Andrew Strong and Mike Rutter will remain members of both the Group and Operating Boards, while John Palmer will join the Operating Board.

As part of the continuing development of Corporate Governance within the Group, in addition to the Audit, Safety, Remuneration and Nominations Committees, a Mergers and Acquisitions Committee has been established to monitor and review all potential acquisitions, and make appropriate recommendations to the Group Board. The M&A Committee will be chaired by Alan Smith (Non-Executive Director since 2006). Alan has a wealth of experience, including Chief Executive roles at Superdrug, Evans Halshaw and Boddington Group. The other members will be Charlie Scott and Anita Lovell, a Walker Trust representative on the Group Board.

Jim French, Chairman and Chief Executive Officer of Flybe, commented:

"Flybe has identified a range of exciting opportunities for growth across a number of markets in Europe, organically, by joint venture and by acquisition. At the same time we are continuing to grow market share in our UK market and aviation support business. In light of this the Group has recognised that it requires an operational structure which will provide the requisite focus and strength to make the most of these growth opportunities. The introduction of the divisional structure will enable us to do that, and is a significant development for the Group.

Moreover, as the Group continues to grow, both in the UK and in the continental European market, it is important for us to have in place a management structure which can support and drive that momentum. Charlie, Mark, Alan, Andrew, Mike and John are formidable and highly experienced individuals who between them have more than 50 years' experience of working within Flybe. We now have the team and the structure in place to continue the Group's growth strategy, both organically and by acquisition, and we look forward to the future with great confidence."

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Notes to Editors

Flybe

Headquartered in Exeter, UK, Flybe is Europe's largest regional airline and the UK's largest domestic airline. The airline operates 69 aircraft (with an average age of just 4.3 years) from 14 UK domestic airport bases and serves 73 airports throughout the UK and twelve other European countries.

In 2010, the airline flew 7.2 million passengers, 45% of whom were business passengers, operating four times more UK domestic routes than any other airline. Flybe's award-winning service has scooped many plaudits - most recently the Best Short-Haul Airline Business Travel Awards for second consecutive year and was Air Transport World's Regional Airline of the World in 2009.

Flybe placed a multi-billion dollar order with Embraer in July 2010 for up to 140 Embraer 175 and E-family aircraft, with the first delivery scheduled for 2011 and successfully floated on the London Stock Exchange in December 2010.