flybe. (2002) (Exeter) will divest itself from flybe. Nordic (Helsinki Vantaa) with its majority 60% stake in the carrier to be sold to partner Finnair (AY, Helsinki Vantaa) for EUR1 (USD1.25). The move, subject to regulatory approval, is scheduled to be completed by the end of this year.
According to Flybe., its decision to withdraw from Flybe. Nordic, parent firm to Flybe. Finland, stemmed from the subsidiary's sustained weak revenue inflows brought on by a declining domestic Finnish passenger market.
"Consequently, the growing losses in scheduled activity had become unacceptable to Flybe, especially as they more than offset the profit contribution of contract flying. Flybe has now signed a binding agreement to sell its 60% equity share in the joint venture to its partner, Finnair, for €1," the UK carrier said.
According to Finnair, despite dialogue over Flybe. Finland's planned restructuring and cost saving strategy, the two carriers had failed to reach a consensus on the way forward.
“The financial performance of our joint venture has not developed according to the expectations of its shareholders. We haven’t been able to arrive at a common view to resolve the profitability issues, and therefore the companies have agreed to discontinue the cooperation. Finnair aims to find a new majority shareholder and a business model that would enable the development of regional flying in a financially sustainable way,” Pekka Vauramo, Finnair CEO, said.
In the meantime, Flybe Nordic.s services will continue as normal, and Flybe will provide transitional support to the joint venture as necessary. The UK codeshare with Finnair will also continue.
Flybe. Nordic currently operates operates twelve ATR72-500s, two E170s, and twelve E190s on flights throughout Finland as well as to Europe on behalf of Finnair on a contract-flying basis and indepedently under the Flybe. brand.
