flybe. (2002) (Exeter) has restructured a leasing agreement signed with Nordic Aviation Capital (NAC) in 2014 involving the delivery of twenty-four ex Republic Airlines (Indianapolis International) Dash 8-400s.
Under the terms of the new deal, flybe. will now only take delivery of fifteen of the aircraft with NAC to take the remaining nine. Of the fifteen, five have already been delivered with the last ten now due for delivery this year.
"...the cancellation of nine Q400 deliveries reflects more cautious capacity growth assumptions over the next two years, lowering seat capacity growth from 17% to 15% in 2016/17 and from 10% to 6% in 2017/18," the carrier said in a statement.
Additionally, the UK-based operator says that in line with plans "to rebalance its aircraft fleet away from operating leases towards outright ownership", ten Q400s it was to have leased from NAC will now be acquired outright while nine lease obligations have now been cancelled. These ten turboprops, which are scheduled for delivery over the next twelve months, will add to three other Q400s flybe. acquired from Rand Merchant Bank (RMB), which were previously on operating leases, in February this year.
"Taking ownership of thirteen aircraft Flybe was obligated to lease (the three from RMB and the ten from NAC) will reduce costs by circa GBP4 million in 2016/17 and circa GBP8 million annually thereafter. It also increases Flybe's flexibility to control the size of its fleet in the future."
