Q&A

OPERATIONAL

Will Loganair share crew rooms with Flybe employees?
No, there is no current plan to share crew facilities. Loganair’s operation will remain under their own AOC.

Will Loganair customers use our call centre/customer relations numbers?
Yes, because all Loganair flights will have BE flight numbers, passengers will use Flybe’s call centre, or preferably flybe.com to make their bookings. The only exception to this is passengers who are eligible to take advantage of the Air Discount Scheme. They will continue to book directly with Loganair, airport ticket desks and affiliated travel agents.

Will Flybe need more staff to handle additional work as a result of the deal?
There will be an associated increase in work in some areas, however, plans are in hand to deal with this additional workload.

Will Loganair’s aircraft be maintained by Flybe?
No, there is no current plan for Flybe to maintain Loganair’s aircraft.

How will this impact Flybe’s Scottish schedule?
The current Flybe network will not be affected. However, customers will have access to a much wider network as a result of this deal. Without compromising Flybe’s low-cost principles of high utilisation and efficient turnaround times, Flybe will look for ways to enhance connection opportunities between Loganair flights and Flybe’s Edinburgh/Glasgow network to England, Northern Ireland, the Channel Islands and France, to open these markets to the Scottish Highlands and Islands’ markets.

Are all Loganair’s services included in the Agreement?
The Orkney Inter-Island services are not part of the agreement and will continue to operate as Loganair flights.

BRANDING

Will Loganair be re-branded as Flybe?
Loganair’s aircraft will be repainted into Flybe livery.

When will Loganair be re-branded as Flybe?
Loganair starts flying the Flybe brand effective 26th October, 2008. New uniforms will be issued to all Loganair’s uniformed staff the day before.

How will Loganair sell and market its services?
The brand used for selling and marketing Loganair’s services will change from British Airways to Flybe. This means that all their advertising, literature, signage and visual identity will change to Flybe. Their on-line sales will be made through www.flybe.com, and customers can continue to book through travel agents or by telephone. In the eyes of the customer, Loganair will be seen as ‘Flybe’.

Will Loganair tickets be sold on the Flybe website?
Yes, they will be sold as is the case with normal Flybe online sales.

FRANCHISE/CORPORATE

What is a franchise?
A franchise is an agreement or license between two parties which gives a person or group of people (the franchisee, in this case, Loganair) the rights to market a product or service using the trademark of another business (the franchisor, Flybe).
The franchisee has the rights to market the product or service using the operating methods of the franchisor. The franchisee has the obligation to pay the franchisor certain fees and royalties in exchange for these rights. The franchisor has the obligation to provide these rights and generally support the franchisee. In this sense, franchising is not a business or an industry, but a method used by businesses for the marketing and distribution of their products or services. Both franchisor and franchisee have a strong vested interest in the success of the brand and keeping their customers happy.

Why has Flybe decided to have a franchise partner?
Flybe’s vibrant and flourishing presence in Scotland’s largest cities, coupled with Loganair’s experience in regional Scottish markets, make an ideal situation for a franchise agreement. This Agreement promotes the award-winning, national Flybe brand, low fares and generous frequent flyer programme to Scottish markets that are more suited to Loganair’s aircraft-type and operational know-how. As is standard with franchise agreements, Flybe will retain a small portion of passenger ticket revenue in the form of a franchise fee.

Why have we chosen Loganair as a franchise partner?
Loganair has a long, dedicated history serving Scotland and its regions with an excellent reliability, punctuality and safety record. This is a natural fit to Flybe’s regional growth strategy.

What are the benefits of having Loganair as a franchise partner?

1. Flybe will provide Loganair’s passengers with easier access to the entirety of Flybe’s network and low fares beyond Scotland, all of which will be bookable on flybe.com.
2. Flybe’s expertise in regional marketing, local sponsorships and strong brand will stimulate untapped market demand and re-invigorate Scottish air travel.

Is this the first franchise agreement for Loganair?
Loganair has been a franchise carrier of British Airways since 1993 but parties believe the time is right now to change the nature of their Agreement to reflect industry changes, ie Flybe’s acquisition of BA Connect, British Airways regional airline. Loganair has also grown substantially during this period and developed a separate route network less dependent on British Airways sales.

Will Loganair have any remaining connection with BA?
Yes, they will be entering a code-share arrangement with British Airways to sell interline connections over London enabling passengers to connect to the British Airways global network.

How will the franchise work in practice?
All Loganair flights will continue to be operated by Loganair, but they will be marketed and sold as Flybe flights. They will have a BE flight number. Passengers will be able to book these flights for the lowest price on flybe.com, but also through our call centre and ticket desks as well as through travel agencies. The exception will be Loganair’s single-pilot operated and air ambulance services.

What does the franchise mean to Flybe?
The franchise will enable the Flybe brand to spread throughout Scotland and continue Flybe’s success at becoming the regional airline of choice throughout the entire United Kingdom. It will enable Loganair’s passengers to continue their travels onto Flybe’s regional networks into France and the rest of Europe with lower fares and greater flexibility than ever before.

How long will this Agreement last for?
This is expected to be a long term commitment.

When will the franchise become effective?
We will begin selling these flights from June for travel commencing in the IATA Winter Season on 26th October, 2008.

What, if anything, will change?
Flybe’s website will change to add all of the new destinations that Flybe, in conjunction with Loganair, will be selling. Over time, Loganair’s aircraft will be repainted with the Flybe logo and branding and there will be some changes to Loganair’s on-board product and fares which have not yet been finalised.

Will Loganair staff receive the same terms and conditions as Flybe staff?
Loganair staff will continue to be Loganair staff, subject to Loganair terms and conditions. We already have generous reciprocal staff travel arrangements with Loganair, and we are looking to build upon this, if possible, once the franchise agreement commences.

Will Loganair staff become employees of Flybe?
No. The companies are and will continue to be completely separate.

Is Flybe buying Loganair?
No. Loganair is simply paying Flybe a franchise fee for the use of its strong brand and distribution platform so that it may grow its passenger network in Scotland. Loganair will remain a private company owned by the current shareholders and there will be no change to employee contractual arrangements.

Does this mean that BA is walking away from Scotland?
BA will have a reduced presence in Scotland but will continue its services from and to London.