Flybe Group PLC Flybe announces completion of Project Blackbird (1255E)
November 02 2015 - 2:00AM
UK Regulatory
TIDMFLYB
RNS Number : 1255E
Flybe Group PLC
02 November 2015
Exeter, UK
2 November 2015
Flybe Group plc ('Flybe' or 'the Group')
FLYBE ANNOUNCES THE COMPLETION OF PROJECT BLACKBIRD, WITH THE
REDEPLOYMENT OF ALL REMAINING SURPLUS JET AIRCRAFT
Flybe, Europe's largest regional airline, is pleased to announce
that it has resolved its last major legacy issue through the
redeployment of all its remaining surplus Embraer E195 aircraft,
thereby bringing Project Blackbird to a close.
Of the original fleet of fourteen legacy E195s, Flybe had
previously announced solutions for eight:
-- Five were handed back to lessors;
-- As announced on 5 March 2015, two are based at Cardiff
Airport under a long-term agreement signed with the airport
operators, Cardiff Airport Limited, flying to a mix of destinations
across UK and Mainland Europe;
-- As announced on 8 October 2015, one will be based at Exeter,
under a long term agreement with Rigby Group-owned Regional &
City Airports, to serve Exeter and Norwich Airports with eight
routes to five destinations in Mainland Europe starting in March
2016.
Today, Flybe is announcing the redeployment of the remaining six
E195s to start from March 2016:
-- One aircraft will replace a Q400 aircraft at Newquay under a
redefined Public Service Obligation (PSO) agreement with Cornwall
Council to satisfy increased demand on the Newquay-London Gatwick
route already operated by Flybe
-- Two will be based at Doncaster Sheffield Airport, flying to
key cities and regional centres across Mainland Europe, under a
long-term agreement with the Airport to provide much needed
regional connectivity to the people of South Yorkshire and the
surrounding area
-- Three aircraft will operate at Birmingham and Manchester
Airports. Two of these will provide additional capacity on high
load factor routes and the third E195 will provide Ejet standby
cover across Flybe's network
Completion of Project Blackbird delivers a GBP40m mitigation
versus Flybe's previously indicated obligation of GBP80m over the
remaining term of the aircraft leases. We currently anticipate that
the financial cost of resolving the remaining E195s will be GBP20m
this year, reducing to around GBP10m next year, and then to GBP6m
the year after and GBP4m in the following year.
Saad Hammad, Chief Executive Officer, said:
"This announcement marks the definitive completion of Project
Blackbird. The arrangements announced today are a superb result for
all Flybe stakeholders. They avoid the need for any upfront
payment, enhance UK regional connectivity and have mitigated
exposures to Flybe. With the last of our major legacy issues behind
us, we can now focus all our attention on becoming a world-class
regional airline."
Steve Gill, Managing Director of Doncaster Sheffield Airport,
said:
"This is a transformational announcement which brings massively
enhanced connectivity to the Sheffield City Region's airport.
Doncaster Sheffield Airport is already the fastest growing airport
outside of London. These two new aircraft will make available half
a million new flight seats and is expected to grow our passenger
traffic by around 30%. This news comes just a few months before the
new motorway link road opens which will enhance the airports
catchment area with journey times to the airport reducing by 20
minutes."
Adam Paynter, Cornwall Council's Cabinet Member for Resources,
said:
"The success of the PSO service has meant that passengers have
sometimes struggled to get tickets for some flights. We know that
this service is hugely important for businesses in Cornwall, with a
large number of people regularly using the route to travel to and
from London. I am sure that the business community will welcome the
increased number of seats and reduced journey times provided by the
new jet aircraft."
Flybe will announce its half year results on 11 November
2015
ENDS
This information is provided by RNS
The company news service from the London Stock Exchange
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