Budget airline Flybe has secured 500 million US dollars (£321.74m) for 20 new Embraer E175 jets which are due for delivery between now and July 2014.
Flybe, Europe's largest regional airline, said it has signed a loan facility with the Brazilian Export Development Bank which provides debt finance for 85 per cent of the aircraft price.
The carrier signed a deal with Embraer at the Farnborough Air Show in July 2010 for up to 140 aircraft, comprising 35 firm orders for E175s and options for a further 105 planes.
The 35 firm aircraft are due for delivery between this month and October 2016, with 29 of them as replacement planes and six earmarked for growth. The financing agreement with BNDES covers the first 20 of those.
Jim French, chairman and chief executive of Flybe, said the deal was a 'significant' vote of confidence in the airline and sends out a 'very clear message' that the business is in robust financial health.
"In the current challenging economic environment, I believe this very significant financing is a great testament to Flybe's recognized strength within the aviation finance community," he added.
Earlier this month the airline said underlying profits rose 74 per cent to £14.3m in the half-year to September 30 after it was boosted by higher passenger numbers in the UK and the acquisition of an airline in Finland. But it said it would reduce capacity by six per cent over the winter amid falling demand.
No comments:
Post a Comment