15 Sep 2011 07:00
Flybe Group plc
("Flybe" or "the Group")
Sale of Aircraft
Flybe, Europe's largest regional airline, is pleased to announce the sale of two Bombardier Q400 aircraft to Rand Merchant Bank of Johannesburg, South Africa ("RMB"), which will lease them to South African Express.
The Q400 aircraft were bought new from Bombardier by Flybe in 2011 and have been in service with the Group since that date. The sale transaction price is in line with the book values of the aircraft.
These two sold aircraft, together with the sale of five aircraft to RMB previously announced this summer, form seven of the nine Q400 aircraft in total that Flybe has earmarked for disposal or lease handback in 2011/12, as announced in the Group's full year results on 30 June 2011. The remaining two aircraft will be handed back as they come to the end of their operating leases prior to the end of this current financial year.
Jim French, Chairman and Chief Executive Officer, commented:
"In our core UK based business, as previously announced, we are maintaining seat capacity for 2011/12 at broadly the same level as the previous year. This includes the first four 88-seat E175 aircraft scheduled for delivery in 2011, from the firm order for 35 E175s (together with 105 options and purchase rights) announced in July 2010. The E175s will give us seat cost advantages versus our existing fleet, and offer a great customer proposition. I am delighted to announce that we have completed the sale of the seven Q400s for the current financial year, which ensures we can deliver flat capacity year on year in the UK without carrying any surplus fixed costs in the business.
"The acquisition of Finnish Commuter Airlines, which brought with it 15 ATR and two Embraer aircraft, demonstrates the growth opportunities available in Europe from making acquisitions which bring with them existing aircraft. As previously reported, we believe that this is the most compelling model for growth in mainland Europe."
15 September 2011
Enquiries:
Flybe | Tel: +44 20 7457 2020 |
Jim French, Chairman & Chief Executive Officer | |
Andrew Knuckey, Chief Financial Officer | |
College Hill | Tel: +44 20 7457 2020 |
Mark Garraway | |
Helen Tarbet |