Flybe to exit short-haul flight contract with Finnair

Helsinki: British carrier Flybe Group will exit its Finnish joint venture with Finnair after the companies failed to agree on how to increase the unit’s profitability, Finnair said on Wednesday.

State-controlled Finnair said Flybe has agreed to sell its 60 per cent stake in Flybe Nordic to a new investor or to Finnair for the price of one euro ($1.2481). Flybe Nordic owns Flybe Finland, which operates a third of Finnair’s European traffic. Flybe will exit the joint venture by the end of 2014, and will continue running the operations for 12 months after that.