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thct@er00atheta othIA�28 nt Sso As zulofhegrme mhabemeefcte ceogais rrt �reement operating"as a British Airwayw franchisee ends on 25th October -  3/2 million seats for flights with Flybe flight numbers will go on sale�in June 2008.

The Agreement`with Loganair - the first of its kind ever for a low cost carrier - is in line with Flybe’s innovative philosophy and strategy of continuing to build a market-leading position as Europe’s largest regional airline following last year’s acquisition of BA Connect.  It is also further evidence of the airline’s commitment to building a significant presence in the Scottish market and to expanding its route network there, extending Flybe’s low fare model throughout the UK - including the Highlands and Islands - which have not previously benefited from low cost airlines.

`Flybe Chairman and Chief Executive Officer, Jim French says: “This landmark agreement, the first time a low cost carrier has entered into such a franchise arrangement, is an exciting development in the evolution of the low cost model and one which Flybe sees as a valid strategic option for the future.”

In further comment, Loganair’s Chairman Scott Grier says: “This is an exciting time for everyone at Loganair and a significant step for the company. The move to become a franchise partner with Flybe provides certainty and removes speculation about the future of the company.  We continue to be committed to operating throughout the Highlands and Islands and this will benefit our customers with a greater choice of connections to UK and European destinations.”

Mr French adds: “This is a win-win for both airlines. For Flybe, we will see our presence in the key Scottish market greatly enhanced and will benefit from increased passenger traffic into our existing network. For Loganair, the alliance is a major opportunity to bring the recognised brand of Europe’s largest regional airline and the benefits of the low cost model to over half a million passengers.”
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