Post by Humberside on Nov 21, 2016 19:50:00 GMT
Regional airline Flybe has announced it will terminate its franchise agreement with Scottish airline Loganair in August 2017 after failing to agree new commercial and operational terms.
Flybe said the resulting change in operations to part of its route network in Scotland “is not expected to have a material impact” on group profits.
Loganair, who have operated under franchise agreements for 24 years, said it will operate services “in its own right” from September 1, 2017 and under its own brand name.
Peter Simpson, chief executive of Loganair's parent company's Airline Investments Ltd, said: “Today's announcement is a major milestone in the 54-year history of Loganair.
“Although Loganair has flown as a franchise carrier for larger airlines over the last 24 years, there is still a huge level of recognition and affinity for the Loganair name throughout Scotland and beyond.
“We believe the time is right for Scotland's airline to now spread its wings once again, and are delighted to be introducing a bold new corporate identity to accompany this important move.”
The franchise deal with Flybe was first agreed in 2007.
Prior to 2007 Loganair operated the franchise in an agreement with British Airways.
Simon Laffin, executive chairman of Flybe, said: “Scotland is very important to Flybe, and we want to ensure that we serve our customers there to the highest standards, whilst delivering a return to our shareholders.
“We shall announce our plans on continuing to serve Scotland in due course.
“In the meantime our customers can travel and book tickets exactly as before, while any new arrangements will be put in place from September 2017 onwards.”
Loganair said it will have its own reservations system in place by March 2017.
Flybe said the resulting change in operations to part of its route network in Scotland “is not expected to have a material impact” on group profits.
Loganair, who have operated under franchise agreements for 24 years, said it will operate services “in its own right” from September 1, 2017 and under its own brand name.
Peter Simpson, chief executive of Loganair's parent company's Airline Investments Ltd, said: “Today's announcement is a major milestone in the 54-year history of Loganair.
“Although Loganair has flown as a franchise carrier for larger airlines over the last 24 years, there is still a huge level of recognition and affinity for the Loganair name throughout Scotland and beyond.
“We believe the time is right for Scotland's airline to now spread its wings once again, and are delighted to be introducing a bold new corporate identity to accompany this important move.”
The franchise deal with Flybe was first agreed in 2007.
Prior to 2007 Loganair operated the franchise in an agreement with British Airways.
Simon Laffin, executive chairman of Flybe, said: “Scotland is very important to Flybe, and we want to ensure that we serve our customers there to the highest standards, whilst delivering a return to our shareholders.
“We shall announce our plans on continuing to serve Scotland in due course.
“In the meantime our customers can travel and book tickets exactly as before, while any new arrangements will be put in place from September 2017 onwards.”
Loganair said it will have its own reservations system in place by March 2017.
www.dailyrecord.co.uk/business/business-news/flybe-terminates-loganair-franchise-deal--9303940