Flybe concludes ‘signifcant’ new aircraft supply deal
AIRLINE Flybe has said it has taken a “significant step” towards resolving its legacy fleet commitments and securing the right aircraft for the future development of its services.
The airline, the largest carrier in terms of passenger volumes at Birmingham Airport, has formulated plans with Republic Airways Holdings Inc. and manufacturer Embraer.
In July 2010 Flybe announced a $1.3bn order with Embraer for 35 of its E175 88-seat regional jets, with deliveries originally scheduled to complete by March 2017. To date, 11 of these aircraft have been delivered to Flybe and last year the deliveries of the remaining 24 were rescheduled to a four-year period from October 2015.
The new agreements relate to these remaining 24 aircraft as well as 24 Q400s currently operated by Republic Airways.
Flybe said the agreements were in line with its revised strategy of operating regional services un-serviced by mainstream airlines with larger aircraft and seat capacity.
Flybe and Embraer will now terminate 20 E175s from Flybe’s firm order backlog, while in a separate agreement between Republic and Embraer, Republic will purchase 50 E175s.
Flybe has agreed with Republic to sublease 24 71-seat Bombardier Q400 turboprop aircraft, with deliveries commencing in March 2015 and spread over a two year period.
Embraer has agreed to defer delivery of Flybe’s firm order of four remaining E175s until 2018, in line with Flybe’s current fleet planning needs.
The Q400 aircraft being sub-leased by Flybe have an average age of 5.4 years and will have an average sub-lease period of 4.6 years at March 2015. Their delivery schedule is said to fit Flybe’s fleet replacement and growth profile as 21 Bombardier Q400s from the existing Flybe fleet come to the end of their lease periods over the next four years.
The intake of Q400s from Republic will make Flybe the largest Bombardier Q400 operator in the world.
Saad Hammad, Flybe CEO, said: “We are committed to flying the right aircraft on the right routes. The agreements between Flybe, Republic Airways and Embraer bring more than just an ability to keep to that commitment. With the substitution of 20 E175 future deliveries by young and attractively priced Bombardier Q400s, our core UK branded fleet is now right sized to our capacity growth and aircraft renewal plans at a net cost broadly in line with our expectations.
“Flybe continues to value its close partnership with Embraer. Our current fleet of E175s are popular and reliable aircraft and will remain a valued part of our fleet, providing efficient and cost effective services on our longer sectors.
“Let us be clear, there is more to do. But these landmark agreements are a significant step towards resolving all our legacy fleet issues and enable us to implement our strategy of connecting regions more effectively.”
Elsewhere, a significant civil aviation deal has been completed with Qatar Airways taking delivery of its first Airbus A380.
The aircraft is the first of A380-800s on order, with Qatar Airways set to take delivery of four of them before the end of this year.
Airline Group Chief Executive, His Excellency Mr Akbar Al Baker said: “This has been a moment more than a decade in the making and we are so delighted to unveil a new passenger experience for our travellers.
“The A380 that we are introducing is not just any A380; we have completely designed every element, giving it a signature touch that has never been seen before on board.”
The newly opened Hamad International Airport, the airline’s hub in Doha, has been specifically created with the A380 in mind, with five contact gates dedicated to the giant aircraft.
The airline will first introduce A380 services on one of its frequencies on the Doha – London route from October, followed by Paris Charles De Gaulle shortly afterwards.
