Flybe Plans IPO

British regional carrier FlyBe has announced plans for an initial public offering. The airline, which during the summer committed to a major fleet expansion with Embraer, says it is looking to raise about £60 million through the share offering. The airline wants to pull off the IPO next month, although the precise timing could change pending market conditions. The carrier says the money is intended not just to finance fleet plans, but also other expansion, potentially through acquisition. CEO Jim French recently told Aviation Week he planned to buy a continental carrier soon. “We’re looking at a range of acquisition opportunities in Continental Europe, some of which we’d like to conclude by the end of this financial year [March 31],” French notes. “We’re looking to create bridgeheads to help us to develop our growth strategy in Continental Europe.” Rosedale Aviation holds 70% of FlyBe, British Airways 15% and French controls 7%. BA has signalled it will retain its 15% holding by acquiring the required number of shares in the IPO process. FlyBe took over the British Airways Connect business three years ago and now operates a two-type fleet based around the Bombardier Q400 and Embraer E-Jet after an extensive aircraft replacement program. Any future acquisition would undergo a similar fleet-transition. “We have no desire to be anything other than a regional airline,” according to French. He believes that Europe’s future regional airline development will be driven by restructuring among the three principle airline groups Air France-KLM, British Airways/Iberia and Lufthansa.