October 12, 2012
Finnair and Flybe sign agreement on transfer of Finnair’s Embraer traffic
Finnair and Flybe have signed a definitive agreement according to which Finnair’s Embraer 190 aircraft will be operated by Flybe Finland Oy from October 28, 2012 onwards. The companies signed a Memorandum of Understanding on the cooperation on May 22, 2012. This cooperation is a part of Finnair’s efforts to improve the profitability of its European network, and it offers, when fully matured, potential savings in excess of 25% in cost categories impacted by this cooperation. Under the agreement, Finnair will transfer the operation of its twelve 100-seat Embraer aircraft to Flybe in a transfer of business. From October 28, 2012 onwards, Flybe will operate these aircraft for Finnair as contract flights, which means that the commercial control and risk for these routes remains with Finnair. Finnair continues to be responsible for sales, marketing and customer support for these flights. The cooperation is not expected to have an impact on Finnair’s revenues or balance sheet, but Finnair is looking for significant cost savings through Flybe’s more efficient operating model.