Bmi Regional and Loganair are joining forces to create a new regional airline group.
They will now operate under a new holding company, Airline Investments Limited (AIL), which has taken control of Bmi Regional. It will be run by CEO Peter Simpson.
The company will have 46 aircraft, carrying around 1.5 million passengers a year with an estimated turnover of £200 million. It will employ 960 people, flying 47 routes across 10 countries.
Both Bmi and Loganair will continue to operate as a “distinct business and brand”. AIL said the consolidation of the two airlines under one company will provide “natural efficiencies and economies of scale that will enhance both carriers”.
Bmi regional operates an all-jet fleet comprising 18 Embraer 135 and 145 aircraft.
Loganair operates 28 aircraft and connects Shetland, Orkney and the Western Isles to destinations in Scotland.
It also provides other regional air links from its bases at Glasgow, Edinburgh, Aberdeen, Dundee, Inverness, Kirkwall and Norwich.
Simpson, who has overseen the launch of seven new European routes for Bmi, said: ““The opportunity to run the AIL Group, building on the turnaround programme at Bmi regional and the continued success of Loganair is very exciting.
“The AIL Group now has substantial size and reach; each brand has tremendous partnerships in their respective market. The two airlines operate in clear niche markets in vital roles such as feeding traffic to mainline carrier networks like Lufthansa, Brussels Airlines and British Airways, with Loganair operating a successful franchise with major regional carrier Flybe,” he added.
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