UK-based regional carrier Flybe plans to sell its 60% stake in Flybe Nordic, its Finnish operation with partner Finnair, for a symbolic €1 due to “unacceptable and deteriorating” losses. The sale is expected to be completed in January 2015. The sale will hit Flybe’s books for £9.9 million in the first half of its current financial year.
In a statement, Finnair said: “Flybe Nordic owns fully the Finnish subsidiary Flybe Finland, which is in charge of Finnair’s regional airline operations.
“Consequently, Finnair is now mapping alternatives to continue Flybe Finland's regional flying with a cost-effective business model and new ownership structure for Flybe Nordic. These alternatives include a potential new majority shareholder for Flybe Nordic.”
The Flybe shares could be sold to a new incoming majority shareholder, or Finnair itself.