FlyBe and Finnair to Setup FlyBe Nordic

British carrier FlyBe and Finnish national career Finnair today announced their intention to jointly acquire Finnish Commuter Airlines (also known as Finncomm). The new joint venture will be called FlyBe Nordic and is to be split 60% – 40% between FlyBe and Finnair respectively.
The new holding company for the joint venture, Flybe Nordic AB, plans to acquire the airline for about €25m and the total cash at the company at the time of the agreement completion. FlyBe will pay €12m of the amount and Finnair plans to pay the remaining €13m.
Finncomm presently operates two Embraer E170s and 13 ATR 42s and 72s with more on order. It has about 400 employees.
In a deal for acquisition of a 20% stake in Finncomm, in September 2010, Finnair acquired some of the airline’s aircraft. Under the new deal, Finnair will acquire all nine of Finncomm’s ATR72s and lease them out to FlyBe Nordic, along with the two Finncomm Embraer E170s already owned by Finnair. Finnair will also acquire and lease to FlyBe Nordic, the three ATR72s which Finncomm presently has on order. The four ATR42 aircraft will be owned by Finncomm’s present majority owner Finncomm Oyj, and be leased out to FlyBe Nordic.
The new airline will continue to operate its routes under the FlyBe brand. However FlyBe and Finnair expect to make FlyBe Nordic the leading regional carrier in the Nordic and Baltic countries in the coming years.
More info about the airline is not known immediately and is expected to be revealed at a press conference scheduled for later today.

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