Regional airline operator Flybe is to introduce new routes connecting Scotland with London City in what its chief executive yesterday called “a significant landmark” in its corporate restructure.
The move follows the signing of a new five-year deal with London City Airport, which will see five new aircraft connecting the UK capital with Edinburgh and Inverness, as well as Dublin, Belfast and Exeter.
Announcing the agreement to the markets yesterday, chief executive Saad Hammad said the news was just the latest step in the “rebirth” of the airline.
He said the firm had “taken into account” the appeal of London City for point-to-point business travellers who wanted to be in London by 9.15am but get home the same evening.
“The decision to re-enter the London market at its most convenient airport follows a rigorous profitability analysis,” Mr Hammad added.
It also comes after the withdrawal of Cityjet from both the Dundee and Edinburgh to London City routes late last year.
Flybe chief commercial officer Paul Simmons said that gave his firm the chance to compete with what was now “a very competitive cost base”.
Meanwhile, franchise partner Loganair is bidding to win a Public Service Obligation-supported tender to operate a new Dundee to London link, applications for which are undergoing evaluation.
Officials at Dundee City Council and Transport Scotland hope the new service a replacement for the existing stop-gap arrangement can get off the ground later this summer.
Mr Simmons said he “sincerely hoped” Loganair would be successful with its proposal.
“As a brand we want to service the whole of the region, and that includes Dundee and the east coast of the country,” he said.
Flybe raised £150m from the markets last month, as investors backed its new plans following years of efficiency savings designed to save the company from the scrapheap.
He said that management had spent two years “getting it straight”.
“We’ve been through a very painful period of getting the business straight, which has involved a lot of cost cutting,” he said.
“Essentially, the business wasn’t viable as a going concern when we came in.”
He added: “Today is the day we start to grow back. After all the grief and pain, this is the start of us stepping up for the future.”
The new services, which begin in October, will be supplemented by off-peak leisure flights from London City to selected ski, regional French and Northern Spanish destinations, and follow the launch of new routes from Birmingham and four further flights from London Southend alongside new franchise partner Stobart Air earlier this month.
The group said the schedule development marked a “major step forward” in meeting its aim of expanding its scheduled commercial operations.