Flybe in £500m planes order

Short-haul routes are the airline's target market

Budget regional airline Flybe has announced a £520m order for new aircraft.

Flybe - formerly British European - operates short-haul routes largely within the UK and to destinations in France, Ireland and the Channel Islands.

The order from Bombardier Aerospace of Canada, is for 17 Q400 planes, with the option of 20 more.

The order heralds a major expansion for Exeter-based Flybe.

It is planned that London City Airport will be among the first new destinations for the new aircraft.

Flybe facts

Formed 25 years ago as Jersey European Airways

Rebranded as British European in 2000

Rebranded as Flybe in July 2002

And it is hoped they will enable Flybe - which has principal operating bases in Exeter, Belfast, Birmingham, Southampton and the Channel Islands - to compete more effectively in the regional low fares sector.

The airline already owns four of the 78-seat Q400 planes.

Managing director Jim French, said: "They are ideal for low-cost air fares in the regional market.

"In the regional market the volumes are not as big as the main trunk routes, so to be economic you have to have the most efficient-sized aeroplane with lowest seat costs, but also the right size for the job."

In the last two years the firm had suffered significant losses, but last summer decided to throw all its weight behind the budget sector.

Mr French said: "For the financial year just ended we have broken even and going forward we see a solid benefit from these aircraft which will bring approximately £12m a year into the business."

Flybe has a strong presence in the Channel Islands - it used to be Jersey European.

And the new planes will be significant for island routes because they can take off and land exceptionally steeply.

Sara Randall Johnson of Flybe said: "It's extremely good news for Guernsey, because the runway is short and it will give us the opportunity to operate into Southampton from there.

"It's a reiteration of our commitment to the Channel Islands."