Flybe bid to set up Irish arm clear for take off

LOW cost airline Flybe – the largest carrier in terms of flight volume at Birmingham Airport – has reached agreement with rival Ryanair to create Flybe Ireland.

The deal – which would involve the transfer of a number of aircraft and operating routes – is dependent on the European Commission’s competition chiefs green-lighting Ryanair’s takeover bid for Aer Lingus.

If Ryanair’s acquisition of Aer Lingus is completed, Flybe expects to seek formal shareholder approval for the acquisition of Flybe Ireland from Ryanair in early Autumn.

Flybe has also announced that it has received irrevocable acceptances representing 64% of the shareholders in support of this possible transaction. The European Commission had insisted on the pledging of irrevocable acceptances by more than 50% of Flybe’s shareholders as a condition for the deal to create Flybe Ireland proceeding.

The shake up could see Flybe take on more than 40 of the existing Aer Lingus short haul routes.