Flybe Group PLC Lease Extension (2830S)
June 22 2018 - 8:12AM
UK Regulatory
TIDMFLYB
RNS Number : 2830S
Flybe Group PLC
22 June 2018
22 June 2018
Flybe Group PLC ("Flybe" or the "Group")
Lease Extension
Flybe Group plc is pleased to announce that today Flybe Limited,
a wholly-owned subsidiary, signed an agreement with GOAL German
Operating Aircraft Leasing GmbH & Co. KG ("GOAL") (the
"Agreement") to extend the leases of five Bombardier Q400 turboprop
aircraft, which were otherwise due to expire between August 2018
and January 2019.
Flybe will extend the leases on these aircraft with the last
aircraft to expire in 2024 for a net cash consideration of $24.3m
payable over the term of the leases. The lease extension provides
Flybe Limited with immediate benefits, including significantly
reduced lease rental payments and reduced cash security deposit
requirements.
The Agreement is in line with the fleet plan announced on 16 May
2018 to retain the Bombardier Q400 as Flybe's core aircraft and to
extend the service life of Flybe's existing Q400 fleet where
economic to do so, in order to maintain a fleet of 70 aircraft. The
Agreement with GOAL will allow Flybe to secure this capacity in the
medium term on a much-improved commercial basis.
Ian Milne, Group CFO of Flybe commented "I am pleased that we
have secured the continued use of these five relatively young Q400
aircraft and that we can continue to work with GOAL This supports
the retention of the Bombardier Q400 aircraft as our core fleet
type, but importantly also provides cost efficiencies in line with
our focus on costs."
Jochen Baltes, Managing Director of GOAL commented "The lease
extension for our five Q400 aircraft was certainly our first choice
for the ten-year-old aircraft in best operating conditions. We are
delighted to keep Flybe as our valued airline customer and are sure
that the upcoming years of the extended lease will run as smoothly
for all parties involved as the past ten years have."
<Ends>
Enquiries:
Maitland +44 (0) 207 379 5151
Andy Donald
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END
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