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Order HereFinnair has acquired Flybe’s 60% stake in Flybe Nordic for €1 ($1.08), temporarily giving it full ownership of the former joint venture (JV), while it finalizes a deal with Finnish investors Staffpoint and G.W. Sohlberg (GWS).
The two airlines set up Flybe Nordic in 2011 through the acquisition of Finnish Commuter Airlines, with Flybe acquiring a 60% stake and Finnair taking the remaining 40%. However, last November Finnair said the partners were going their separate ways after failing to “arrive at a common understanding to resolve profitability issues.” Finnair announced plans to either buy Flybe out of Flybe Nordic, or find a buyer for Flybe’s stake.
In January two Finnish firms, recruitment firm StaffPoint Holding and family-owned investment broker GWS, signed a letter of intent to buy Flybe’s 60% Flybe Nordic stake for the token sum of €1. Competition clearance has been granted, but this deal is yet to be finalized. If it is firmed, StaffPoint will own 45% of the JV, Finnair will hold 40% and GWS will take the remaining 15%.
On Tuesday, Finnair closed the acquisition of Flybe’s stake, but it stressed this is an interim solution.
While the discussions with Staffpoint and GWS still continue, Finnair will now acquire Flybe UK’s share of Flybe Nordic. We hope to sign a new share purchase agreement in the coming months,
Finnair CEO Pekka Vauramo said.
Flybe Nordic is parent to operating carrier Flybe Finland, which operates a fleet of 26 aircraft, comprising 12 ATR 72s, two Embraer E-170s and 12 E-190s. Finnair said the subsidiary, which will most likely be renamed, operates “a substantial part” of its domestic and European routes. Flights operated by Flybe Finland will continue normally as the sale talks continue.
After parting ways with Flybe, Finnair hopes to find a “financially sustainable” solution for its regional flying. “We will take an important step to this direction at the beginning of May, when all routes operated by Flybe Finland at their own commercial risk will become a part of Finnair’s contract flying arrangements, as we have communicated earlier. Flybe Finland has also implemented several internal measures to improve the company’s financial position,” Vauramo said.
Finnair will report on the financial impact of the deal during at the release of its interim results on May 7. Finnair has already written down the value of its Flybe Nordic shares, but it has previously acknowledged that the business requires “further restructuring.”
Commenting on the sale, Flybe said: “Flybe Group is pleased to announce the completion of the disposal of Flybe UK’s 60% interest in Flybe Nordic to Finnair. The agreement, which was first announced on Nov. 12, 2014, is a significant step forward in Flybe’s turnaround program.”
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Order HereFinnair has acquired Flybe’s 60% stake in Flybe Nordic for €1 ($1.08), temporarily giving it full ownership of the former joint venture (JV), while it finalizes a deal with Finnish investors Staffpoint and G.W. Sohlberg (GWS).
The two airlines set up Flybe Nordic in 2011 through the acquisition of Finnish Commuter Airlines, with Flybe acquiring a 60% stake and Finnair taking the remaining 40%. However, last November Finnair said the partners were going their separate ways after failing to “arrive at a common understanding to resolve profitability issues.” Finnair announced plans to either buy Flybe out of Flybe Nordic, or find a buyer for Flybe’s stake.
In January two Finnish firms, recruitment firm StaffPoint Holding and family-owned investment broker GWS, signed a letter of intent to buy Flybe’s 60% Flybe Nordic stake for the token sum of €1. Competition clearance has been granted, but this deal is yet to be finalized. If it is firmed, StaffPoint will own 45% of the JV, Finnair will hold 40% and GWS will take the remaining 15%.
On Tuesday, Finnair closed the acquisition of Flybe’s stake, but it stressed this is an interim solution.
While the discussions with Staffpoint and GWS still continue, Finnair will now acquire Flybe UK’s share of Flybe Nordic. We hope to sign a new share purchase agreement in the coming months,
Finnair CEO Pekka Vauramo said.
Flybe Nordic is parent to operating carrier Flybe Finland, which operates a fleet of 26 aircraft, comprising 12 ATR 72s, two Embraer E-170s and 12 E-190s. Finnair said the subsidiary, which will most likely be renamed, operates “a substantial part” of its domestic and European routes. Flights operated by Flybe Finland will continue normally as the sale talks continue.
After parting ways with Flybe, Finnair hopes to find a “financially sustainable” solution for its regional flying. “We will take an important step to this direction at the beginning of May, when all routes operated by Flybe Finland at their own commercial risk will become a part of Finnair’s contract flying arrangements, as we have communicated earlier. Flybe Finland has also implemented several internal measures to improve the company’s financial position,” Vauramo said.
Finnair will report on the financial impact of the deal during at the release of its interim results on May 7. Finnair has already written down the value of its Flybe Nordic shares, but it has previously acknowledged that the business requires “further restructuring.”
Commenting on the sale, Flybe said: “Flybe Group is pleased to announce the completion of the disposal of Flybe UK’s 60% interest in Flybe Nordic to Finnair. The agreement, which was first announced on Nov. 12, 2014, is a significant step forward in Flybe’s turnaround program.”
The information on this page may have been provided by a contributor and no guarantees can be made about the accuracy of any content. Contributors must obtain all necessary licenses and/or ownership rights from the relevant content owner(s) before submitting the same for publication. AIRLINE PARTNERSHIP disclaims all liability arising from the publication of content received from contributors. Please refer to our Disclaimer for more details.
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Order HereFinnair has acquired Flybe’s 60% stake in Flybe Nordic for €1 ($1.08), temporarily giving it full ownership of the former joint venture (JV), while it finalizes a deal with Finnish investors Staffpoint and G.W. Sohlberg (GWS).
The two airlines set up Flybe Nordic in 2011 through the acquisition of Finnish Commuter Airlines, with Flybe acquiring a 60% stake and Finnair taking the remaining 40%. However, last November Finnair said the partners were going their separate ways after failing to “arrive at a common understanding to resolve profitability issues.” Finnair announced plans to either buy Flybe out of Flybe Nordic, or find a buyer for Flybe’s stake.
In January two Finnish firms, recruitment firm StaffPoint Holding and family-owned investment broker GWS, signed a letter of intent to buy Flybe’s 60% Flybe Nordic stake for the token sum of €1. Competition clearance has been granted, but this deal is yet to be finalized. If it is firmed, StaffPoint will own 45% of the JV, Finnair will hold 40% and GWS will take the remaining 15%.
On Tuesday, Finnair closed the acquisition of Flybe’s stake, but it stressed this is an interim solution.
While the discussions with Staffpoint and GWS still continue, Finnair will now acquire Flybe UK’s share of Flybe Nordic. We hope to sign a new share purchase agreement in the coming months,
Finnair CEO Pekka Vauramo said.
Flybe Nordic is parent to operating carrier Flybe Finland, which operates a fleet of 26 aircraft, comprising 12 ATR 72s, two Embraer E-170s and 12 E-190s. Finnair said the subsidiary, which will most likely be renamed, operates “a substantial part” of its domestic and European routes. Flights operated by Flybe Finland will continue normally as the sale talks continue.
After parting ways with Flybe, Finnair hopes to find a “financially sustainable” solution for its regional flying. “We will take an important step to this direction at the beginning of May, when all routes operated by Flybe Finland at their own commercial risk will become a part of Finnair’s contract flying arrangements, as we have communicated earlier. Flybe Finland has also implemented several internal measures to improve the company’s financial position,” Vauramo said.
Finnair will report on the financial impact of the deal during at the release of its interim results on May 7. Finnair has already written down the value of its Flybe Nordic shares, but it has previously acknowledged that the business requires “further restructuring.”
Commenting on the sale, Flybe said: “Flybe Group is pleased to announce the completion of the disposal of Flybe UK’s 60% interest in Flybe Nordic to Finnair. The agreement, which was first announced on Nov. 12, 2014, is a significant step forward in Flybe’s turnaround program.”
The information on this page may have been provided by a contributor and no guarantees can be made about the accuracy of any content. Contributors must obtain all necessary licenses and/or ownership rights from the relevant content owner(s) before submitting the same for publication. AIRLINE PARTNERSHIP disclaims all liability arising from the publication of content received from contributors. Please refer to our Disclaimer for more details.