Regional air operator Flybe launched a £150 million share issue in a bid to banish its turbulent financial past and drive future growth.
Around £68m of the cash raised will go towards strengthening the firm’s balance sheet.
However, a further £35m has been earmarked for new investment in the carrier’s UK-based operations.
The cash will be used to identify and fund additional air routes and develop new bases for Flybe, which is Europe’s largest regional independent airline.
The investment plan has been devised by former easyJet executive Saad Hammad, who was appointed chief executive of the struggling carrier last year.
Mr Hammad’s early days in the job saw him oversee the implementation of a major restructuring plan for the airline which has included the loss of 450 jobs, the grounding of aircraft and the axing of a number of operational bases including those in Inverness and Aberdeen.
Earlier this month, Mr Hammad said the first two phases of the turnaround plan were on track to deliver £40m of annualised cost savings by the end of March.
Mr Hammad yesterday said the offer which is being fully underwritten by Liberum Capital Ltd and will see 141.5m shares sold at 110p, a 7.2% discount on the closing mid-market price of 118.5p on February 18 signalled an “exciting new phase” in Flybe’s development.
“We have made significant progress over the past year in stabilising, restructuring and reconfiguring the group,” Mr Hammad said.
“I am pleased to announce a £150m fully underwritten capital raise which will significantly strengthen our balance sheet and provide capital to pursue our profitable growth strategy.
“We enter an exciting phase in the group’s development as we continue to build Europe’s best regional airline,” added Mr Hammad.
“I would like to thank our existing and new owners for their support of our capital raise, and also my colleagues across the group for their continued hard work and commitment.”
No details of potential new Flybe bases or air routes were disclosed by the company.
Flybe had been a regular presence in the skies above Dundee until late 2012, when it pulled out of operating two flights from the city to Belfast and Birmingham.
However, the carrier will make a return next month as franchise partner Loganair begins operating a Flybe branded service to London Stansted from March 30.