Irish Flybe operation aims to be profitable in first year

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Flybe Group would consult with budget carrier Ryanair to develop a one-year business plan to ensure its proposed Flybe Ireland operation would be profitable in its first 12 months.

The new operation would be established as part of the remedy solution to clear Ryanair's planned acquisition of flag-carrier Aer Lingus.

Flybe Group says the business plan would shape a cost structure which, based on the preceding year's revenues, would generate €20 million ($27 million) in pre-tax profit in its first year.

Should this figure fall short, the company adds, an "adjustment mechanism" will take effect on the €100 million start-up cash sum which Ryanair is injecting into Flybe Ireland.