Flybe signs white-label plane deal with Scandinavia's SAS

26th Nov 2014 14:53

UK low-cost airline group Flybe has entered into a white-label deal with Scandinavia's largest carrier, SAS, to operate four of its aircraft from next year.Starting in October 2015, Flybe will run four ATR72-600 aircraft on behalf of SAS used on short-haul flights in Europe.The planes are being provided with full flight and cabin crew as well as maintenance, Flybe said.The deal will initially last for six years but there is scope for it to be extended and for a further four aircraft to be added."This white label agreement with Scandinavia's largest carrier confirms Flybe's twin-engine growth strategy and we are excited about its long-term potential," said Flybe chief executive Saad Hammad."We look forward to starting operations in Scandinavia next year."Analyst Gerald Khoo from broker Liberum said there would be no impact on his financial forecasts for Flybe in the near term, but the deal could lead to "additional opportunities" in the future."[The deal's] importance lies in representing the first tangible progress on the second element of management's twin-engined growth strategy set out at the time of the fundraising in February, building on the expansion of commercial services already launched," he said.Flybe's shares were down 0.7% at 101p before the close of trade on Wednesday.