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Flybe barred from Manchester-Guernsey route; Norwegian expanding from Sweden.

Analysis

Flybe is taking legal advice to defend its right to operate Guernsey-Manchester service. The Guernsey State Commerce and Employment Department barred the carrier from the route, following a recent a review of all Guernsey air transport licences. No reason for the suspension has been given. Flybe shares were 3.4% higher yesterday.

Norwegian announced plans to react to strong demand in the Swedish market by launching seven new international routes from Gothenburg Landvetter. The carrier plans to launch services to Malaga, Palma, Pristina, Chania and Nice in Jun-2011 and to Barcelona and Rome in Aug-2011. The carrier expects capacity growth in Sweden of 20-25% in 2011.

Selected PEA daily share price movements (% change): 09-Mar-2011

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