Scotland business

New regional airline group created

Loganair aircraft flying under Flybe livery Image copyright Loganair
Image caption Loganair operates scheduled services under Flybe livery

Loganair and bmi regional are joining forces, following the creation of a new regional airline group.

The group was created by holding company Airline Investments Limited (AIL), which has taken control of bmi regional.

AIL is owned by entrepreneurs Stephen and Peter Bond, who are also behind Glasgow Airport-based Loganair.

The combined group has 46 aircraft, flying 47 routes across 10 countries in Europe.

Its annual turnover is about £200m and it employs a total of 960 people.

AIL said the consolidation of the two airlines under one holding company would provide "natural efficiencies and economies of scale".

Each carrier will continue to operate as a distinct business and brand.

Bmi regional operates an all-jet fleet comprising 18 Embraer 135 and 145 aircraft.

Its registered office and operations control is located at Aberdeen Airport.

Image copyright other
Image caption Bmi regional operates 18 Embraer aircraft.

Loganair operates 28 aircraft and connects Shetland, Orkney and the Western Isles to destinations in Scotland.

It also provides other regional air links from its operational bases at Glasgow, Edinburgh, Aberdeen, Dundee, Inverness, Kirkwall and Norwich.

The airline is a franchise partner of Flybe and a codeshare partner of British Airways.

'Tremendous partnerships'

The new group will by led by industry veteran Peter Simpson, former managing director of BA at Gatwick Airport and group managing director of bmi.

Mr Simpson said: "The opportunity to run the AIL Group, building on the turnaround programme at bmi regional and the continued success of Loganair, is very exciting.

"The AIL Group now has substantial size and reach; each brand has tremendous partnerships in their respective market.

"The two airlines operate in clear niche markets in vital roles such as feeding traffic to mainline carrier networks like Lufthansa, Brussels Airlines and British Airways, with Loganair operating a successful franchise with major regional carrier flybe.

"The opportunity now is to build on the synergies between the two sister airlines and deliver great benefits to our customers and partners alike."

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