Press office

Under the terms of the joint venture, Flybe will pay €12 million cash and Finnair €13 million on completion. Flybe will take a 60% stake in the joint venture, to be known as Flybe Nordic AB ('Flybe Nordic'), while Finnair will hold the remaining 40%. Completion is expected to take place within the next four to six weeks, and is subject to competition clearance.

FCA is Finland's largest domestic airline by operations, flying around 900,000 passengers per annum in the Finnish domestic and Nordic and Baltic regional markets. It currently has 15 regional aircraft and an annual turnover of approximately €90m. At present the business carries an estimated 34pc of Finnish domestic air traffic (through a mix of scheduled and contract flying).

Eversheds has advised Flybe on its corporate legal affairs since its acquisition of the BA Connect business from British Airways in March 2007. The firm recently advised Flybe on its successful IPO in December 2010.

The Eversheds team was led by Flybe client partner Simon Masters and included partners Hannah Kendrick and Tom Bridgford and solicitor Paul Keohane. Eversheds Swedish office also advised on the transaction alongside Finnish law firm, Castren & Snellman.

Simon commented:

“We are extremely proud of our ongoing relationship with Flybe and delighted to have helped them take the first step towards their planned European expansion outlined at the time of their recent IPO. As always, it’s been a pleasure to work with the Flybe team."

Jim French, Chairman and CEO of Flybe Group plc, said:

"We are absolutely delighted to announce our strategic partnership with Finnair and the acquisition of FCA. We have worked closely with Simon and his team at Eversheds for a number of years now. They know our people and our business and have again played an important role in helping us achieve a key strategic goal.”