Flybe Group - Sale of Aircraft

Flybe, Europe (Chicago Options: ^REURTRUSD – news) ’s largest regional airline, is pleased to announce the sale of two Bombardier Q400 aircraft to Rand Merchant Bank of Johannesburg, South Africa (“RMB”), which will lease them to South African Express.

The Q400 aircraft were bought new from Bombardier by Flybe in 2011 and have been in service with the Group since that date. The sale transaction price is in line with the book values of the aircraft. Flybe is currently in negotiations regarding the sale of a further two Q400 aircraft.

The two sold aircraft, together with the sale of three aircraft to RMB announced on 8 July 2011, form part of the nine aircraft in total that Flybe has earmarked for disposal or lease handback in 2011/12, as announced in the Group’s full year results on 30 June 2011.

Jim French, Chairman and Chief Executive Officer, commented:

“The acquisition of Finnish Commuter Airlines, which brought with it 15 ATR (SNP: ^ATRY – news) and 2 Embraer aircraft, demonstrates the growth opportunities available from making acquisitions which bring with them existing aircraft. As previously reported, we believe that this is the most compelling model for growth in mainland Europe.

“Our ongoing policy of adjusting our fleet capacity is part of this strategic rationale of de-risking the business and balancing organic and acquisitive growth across the Group as a whole.”