Flybe has confirmed today (November 30) it plans to float on the London Stock Exchange.
The regional airline will launch an initial public offering (IPO) to investors, with a base of around £60 million of new shares, in December.
Jim French, Flybe’s chairman and CEO, said the listing will help Flybe in achieving the next stage in its strategy for growth.
Flybe plans to use 50% of the proceeds to fund its fleet expansion – the airline has already placed orders for up to 140 Embraer E175 jets.
The remaining 50% will go towards strengthening Flybe’s cash position, to help the airline pursue growth opportunities, such as codeshares, tie-ups with other airlines and acquisitions.
The regional airline signed a codeshare deal with Air France in July, and plans to expand further - ongoing discussions with Finnair could mean substantial expansion in the Baltics and Scandinavian region.
French said: “We are delighted to bring Flybe to the market. The company has come a long way in a short time, from its origins as a provincial carrier to one of Europe’s leading regional airlines.
“We look forward to welcoming new shareholders on board for the next leg of our journey.”
According to Flybe, British Airways (BA) has said it will buy enough shares to maintain its existing 15% stake in the company.
Willie Walsh, BA’s CEO, said: “Since our divestment of BA Connect to Flybe in March 2007, we have been impressed with the achievements of Flybe and its management team.
“We are committed to supporting Flybe in its listing and capital raising, and wish Jim and the team every success as a public company.”
Flybe has had a number of name changes since it started operations as Jersey Eureopan Airways in 1979.
It was acquired in 1983 by the parent company of charter airline Spacegrand Aviation and the two airlines were merged in 1985 under the name Jersey European.
In 2000, the airline was renamed British European Airways, but two years later it was time for another change, which seems to have stuck.
Flybe came into being in 2002, under a business model designed to incorporate certain elements of the legacy airline and others of the low cost carrier.