News / Loganair severs ties with budget airline Flybe
AIRLINE Loganair is bringing its current relationship with Flybe to an end and will start operating flights under its own name next autumn.
Loganair has operated a franchise agreement with Flybe on flights to and from Shetland since late 2008, and for many years prior to that had a similar arrangement with British Airways.
The company announced on Monday that it would begin operating flights in its own right starting on 1 September 2017 – bringing to an end nearly quarter of a century of franchises.
Budget airline Flybe has come in for its share of stick from Shetland passengers, particularly over its customer service, though Loganair stopped short of explicitly criticising its partner in its statement.
Shortly after taking over the franchise, Flybe backed down and removed debit card charges amid community pressure. But public criticism of high air fares and delays to flights have been a constant feature over the past decade, with many islanders referring to the service as “Flymaybe”.
In a statement to the Stock Exchange, Flybe appeared to suggest it had taken the decision to terminate the agreement, citing “a failure to agree future operational standards and commercial arrangements”.
But Loganair poured cold water on that notion, stating the decision not to extend the franchise was “made solely by Loganair’s board”.
Loganair said it had “carefully considered options to renew the franchise agreement with Flybe or to re-establish independent services under Loganair’s own name” before opting for the latter.
“Although our franchise arrangement has worked satisfactorily since 2007,” the company stated, “we felt that the time was right for us to re-establish the Loganair brand and to offer the high standards of customer service for which the airline became renowned during its first 31 years of operation.
“Independence will also provide us with greater opportunity to work with a wide range of airlines to offer connecting flights beyond our own network to destinations worldwide.”
Loganair says it will establish its own reservation system by March 2017 for people wanting to make bookings beyond 1 September.
The Scottish Government-funded Air Discount Scheme (ADS) will continue to operate, which Loganair also expects to offer a frequent flyer scheme but “cannot yet confirm details of this”.
Loganair has endured troubled times in recent years, with technical faults plaguing flights in and out of the islands, though punctuality figures for recent months have shown an improvement on a dismal performance in 2015.
The airline said discussions with Flybe about the franchise arrangement “did indeed commence during a period in late 2015 where Loganair’s reliability fell short of the levels that our customers rightly expect of us”.
Changes brought in since have “yielded excellent results and Loganair is now achieving punctuality and reliability which are ahead of the UK airline industry average”.
Loganair will offer over 1,000 flights a week across 46 routes and the Glasgow-based company says flying under its own name will introduce a “new, definitively Scottish identity to the skies”.
Its franchise with British Airways ran from 1993 until 2007, while the existing Flybe franchise concludes on 31 August 2017.
Chief executive Peter Simpson of parent company Airline Investments Ltd – which also owns one of Flybe’s main UK competitors, BMI Regional – said the announcement was a “major milestone in the 54-year history of Loganair”.
He said the time was right for the airline to “spread its wings once again” and was “delighted to be introducing a bold new corporate identity to accompany this important move”.
Loganair managing director Jonathan Hinkles said he was delighted on behalf of the company’s 600-strong workforce and said everyone was “very much looking forward to providing the highest standards of safety, punctuality and customer service synonymous with the Loganair name”.
“We hold tremendous responsibility to operate services on lifeline routes and provide connectivity for Scotland – operating more flights in Scotland than every other airline put together – and I am wholly confident that Loganair’s independence will be warmly welcomed by both our customers and our dedicated team of professional employees.”
Shetland MSP Tavish Scott said he “strongly” welcomed the decision.
“Flybe may have some advantages but their customer care is raised with me time and time again,” he said. “So Loganair flying as Loganair means travellers know who they are and who is responsible for the service.
“Loganair have begun addressing their reliability problems by recruiting more engineers and opening a new parts store at Glasgow Airport. So the airline’s success depends on providing reliable and affordable links to the Scottish mainland.”
Scott added: “I want to see Loganair go from strength to strength in meeting the needs of island travellers and look forward to working with them on behalf of Shetland.
“This encouraging picture would be further improved if the Scottish Government would immediately reintroduce business and other travellers they omitted from the ADS scheme which would help with travel costs too.”
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