BA To Sell Regionals to Flybe

 - December 8, 2006, 5:57 AM

Exeter, UK-based Flybe has agreed to buy most of British Airways’ BA Connect subsidiary. In return, BA will take a 15-percent stake in Flybe, which plans to retire all the BA Connect airplanes now in the British Airways stable and replace them with Bombardier Q400s and Embraer E195s. British Airways CEO Willie Walsh told reporters he expected to conclude the deal by year-end. Flying 52 routes among 13 UK airports, Manchester-based BA Connect lost some £6 million ($11.43 million) during the first half of the year and hasn’t turned a profit since 2001. BA said the transaction will not include BA Connect operations from London City Airport and between Manchester and New York.