Brand New World

The UK’s largest domestic airline has announced its plans to float on the London Stock Exchange.

Flybe Group said its base public offer, which is expected to complete in December, will raise approximately £60m through new shares.

Half of net proceeds will be put towards expanding the airline’s fleet of aircraft.

Company head Jim French said: "We are delighted to bring Flybe to the market.

"A listing will assist Flybe in achieving the next stage in its exciting strategy for growth.

"We look forward to welcoming new shareholders on board for the next leg of our journey."

British Airways, which holds 15% of the regional airline, has said it intends to maintain its share.

Commenting on the announcement, BA chief Willie Walsh said: "We are delighted to participate in the Flybe IPO.

"Since our divestment of BA Connect to Flybe in March 2007, we have been impressed with the achievements of Flybe and its management team."

With codeshare arrangements with British Airways and Air France, Flybe had 7.2 million passengers across its 215 routes in the 12 months to March 2010.

The company’s directors claim it was one of only a few airlines to maintain profits through the economic downturn.

The Exeter-based carrier posted pre-tax profits of £6.8m in the year to March 31, down 47% on the previous year.