The British company Flybe and the Finnish Finnair have decided to restructure the ownership of their shareholdings in Flybe Nordic, and Flybe has agreed to sell the shares it holds in Flybe Nordic to a potential new majority shareholder or Finnair for the symbolic price of one euro. The sale of the shares is subject to the approval of competition authorities.
Flybe Nordic owns entirely Finnish subsidiary Flybe Finland, who is responsible for regional operations of Finnair. accordingly, Finnair are testing alternatives for continuing regional services to Flybe Finland on the basis of a profitable business model and new ownership structure for Flybe Nordic. Those alternatives include a potential new majority shareholder for Flybe Nordic.
Finnair and Flybe started their collaboration in 2011, When they founded the joint venture Flybe Nordic, that Flybe has the 60 percent and Finnair the 40 per cent.
The two companies have long discussed the strategy of restructuring and cost saving for Flybe Finland but have not been able to come to a common understanding about the solution of the problems of profitability, which is why the two carriers have signed an agreement under which it is expected that Flybe bait by Flybe Nordic by the end of 2014.
Source: The Flight