Flybe agrees tentative Ryanair route transfer pact

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UK regional operator Flybe Group has reached an agreement in principle with Ryanair regarding the possible transfer of routes and aircraft, as part of proposed remedies tied to Ryanair's bid for Aer Lingus.

The agreement centres on establishing a new company to hold "relevant business assets and liabilities", says Flybe. The assets would include €100 million ($135 million) in cash.

Flybe Group would then acquire the company.

It says the agreement has not yet been approved by the Flybe board, and would also need to be put to shareholders.

Ryanair is looking to obtain European Commission clearance to take over Aer Lingus, and the shift of routes and a number of aircraft is part of a package of proposals aimed at resolving competition concerns.

Flybe says the implementation of the agreement depends on the Commission's decision regarding Ryanair's offer for Aer Lingus as well as the agreement of a remedy timetable.