UK regional carrier Loganair Group, a franchise partner of Flybe, will continue to develop its route network outside the Scottish heartland to help offset the effects of reduced government subsidies, including the withdrawal of the Edinburgh administration's Air Discount Scheme for business passengers.
During the past year the Glasgow airport-based turboprop operator has begun flying two routes for Flybe from Norwich to Manchester and Exeter, alongside a public service obligation route for the Irish government linking Donegal and Dublin.
In the airline's accounts for the year to 31 March 2012, outgoing chairman Scott Grier emphasises that its network development coupled with the 31 July 2011 acquisition of Cambridge airport-based Suckling Airways has "cushioned the effects of the economic recession on Loganair's scheduled passenger services particularly within Scotland".
Suckling, loss-making at the time of its acquisition, has now returned to profitability, says Grier.
For the full year, turnover at Loganair Group, including eight months' contribution from Suckling, stood at £72.6 million, up from £60.4 million the year before. Pre-tax profit was £3.51 million against £2.81 million in 2011.
Excluding loss-making Suckling, turnover stood at £68.9 million. The group's interests include ground handling business Aero Handling.
During the financial year it operated 26 aircraft, the majority of which were Saab 340s.