Flybe's share of Flybe Nordic JV generates GBP2.2m loss in 1HFY2015

Flybe stated (12-Nov-2014) its share of the Flybe Nordic JV with Finnair was a loss after tax of GBP2.2 million in 1HFY2015, down from a profit of GBP0.2 million in 1HFY2014. Flybe said: "Contract flying accounts for the bulk of the activity in Flybe Finland involving 22 aircraft, out of a total of 26 in the joint venture, and is profitable. The smaller commercial flying operation of four aircraft is loss-making due to the continuing decline in the domestic Finnish passenger market. The losses have been increasing over H1 despite the reduction in scheduled capacity (two out of six aircraft removed in April/May). These losses significantly outweighed the profits in contract flying. An impairment review was performed at the balance sheet date to determine whether the carrying value of the joint venture was impaired. This resulted in a full net impairment of assets of £9.9m being recognised in the period." Flybe added: "Flybe has written down its accumulated investment of £10.6m in the joint venture and separately released a payable release of £0.7m. The agreement is subject only to approval from the Finnish Competition authorities, and is targeted to complete by January 2015. In the meantime, Flybe Finland services will continue as normal, and Flybe will provide transitional support to the joint venture as necessary. The UK codeshare with Finnair will also continue." [more - original PR]