Loganair (LM, Glasgow International) has announced it will discontinue its franchise agreement with flybe. (2002) (Exeter) with effect from August 31, 2017.

The Glaswegian scheduled operator said in a statement that despite the discontinuation of the franchise agreement, it is in talks with flybe over potential opportunities to work together in future.

“Although Loganair has flown as a franchise carrier for larger airlines over the last 24 years, there is still a huge level of recognition and affinity for the Loganair name throughout Scotland and beyond," Peter Simpson, Chief Executive of Airline Investments Ltd, Loganair’s parent company, said. "We believe the time is right for Scotland’s Airline to now spread its wings once again, and are delighted to be introducing a bold new corporate identity to accompany this important move.”

For its part, flybe said the discontinuation of the franchise agreement stemmed from "a failure to agree future operational standards and commercial arrangements."

Loganair operated a British Airways (BA, London Heathrow) franchise agreement from 1993 until 2007 when it switched to Flybe.

The airline says its long-standing codeshare arrangement with British Airways for flights from points throughout the Highlands and Islands to London and onwards to British Airways’ worldwide network, will continue.

Employing over 600 people, Loganair operates a fleet of twenty-eight aircraft including BN-2s, DHC-6s, Saab 340As and Saab 340Bs, Do328-100s, and Saab 2000s. In addition to scheduled services throughout Scotland, it also undertakes an extensive range of contract services for Royal Mail and various oil and gas companies.