26 November 2014 – white label agreement
Flybe has signed a white-label agreement to fly services for SAS, Scandinavia’s largest carrier. This will see Flybe operating four ATR72-600 aircraft on behalf of SAS, starting in October 2015 and lasting for an initial six years, with scope for expansion. The aircraft will be used on short-haul SAS services in Europe and are being provided with full flight and cabin crew as well as maintenance. Although this is a relatively small deal in the grand scheme of things, SAS carries around 30 million passengers per year to destinations in Europe, USA and Asia, so it is a good partner to be working with. We had downgraded to HOLD on valuation grounds earlier this month and maintain this stance for the time being.