Two new links as Flybe gets itself BA Connected

TWO new air links for the island have been billed as the first of improved travelling opportunities across Europe. On Monday Flybe announced that it had completed the acquisition of BA Connect, the regional airline business of British Airways.

Once the transition is complete, the airline will operate 152 routes, flying from 22 UK and 34 European airports with new ones to key commercial centres including Paris, Dusseldorf, Frankfurt and Milan.

The airline's chief commercial officer, Mike Rutter, said the first benefits to Guernsey would be the launch of a Manchester service, breaking Aurigny's monopoly, and re-establishing the Norwich route.

Both will commence next month and more could follow.

'Beyond that, Guernsey passengers will be able to catch connecting flights from any of the existing destinations from the island, including Exeter and Southampton, to airports across the network, all on one integrated ticket,' he said.

Flybe chairman and chief executive Jim French said the immediate priority was to ensure the transition was managed efficiently.

Once this is complete, the deal, which does not include BA Connect's London City or Manchester-JFK routes, will create a business with more than £500m. in revenues flying nearly 10 million passengers annually.

Through the merger of the two networks, Flybe will become Europe's largest regional airline with a network for which it claims a unique balance between business and leisure passengers.

Mr French said it was a proud day for Flybe.

'It gives us critical mass across our domestic and European city markets and, with valuable slots at congested European airports, brings our growth plans forward by two years. Flybe is now firmly established as one of the UK's largest airlines.'

Included in the deal, BA gave Flybe £130m. cash to take the business off its hands.

Mr Rutter said: 'We are very pleased with this as it gives us the financing to complete the transition including replacing all the inefficient aircraft.'

Flybe plans to increase its current commitment to invest $1.2bn in new planes to over $2bn by increasing the fleet to more than 80 Bombardier Q400 and Embraer 195 aircraft by 2010.

Mr French said the airline would retire the BA Connect fleet of 50-seat jets as soon as possible to achieve maximum efficiency.

'Flybe will have one of the youngest and most environmentally sensitive fleets in the world. In line with its environment policy, Flybe will by then have reduced fuel consumption by over 50% per seat.'

BA has also aided the transition by providing commercial support through entering into a one-way codeshare agreement on all previous BA Connect routes.

Mr French said that would enable a smooth transition of the customer base to the Flybe brand.

As part of the deal, BA receives a 15% interest in Flybe.

Mr French said millions of BA Connect travellers would now benefit from increased service and frequency at substantially lower prices while flying on the most environmentally friendly aircraft available in the regional air travel market.

The new combined business will employ more than 3,000 staff.

'We are confident the new airline will offer exciting and continued career opportunities. During the last four months, Flybe has worked closely with all unions and staff associations to ensure that all staff would be working on the same terms and conditions from the commencement of the new, combined business,' he said.

'We are all looking forward to working together to ensure Flybe will be a success.'