AUGUST 6TH, 2015
Finnair: Negotiations on Norra ownership continue
Finnair, Staffpoint Holding Ltd (Staffpoint) and G.W. Sohlberg Ltd (GWS) have previously indicated an intention to conclude a transaction whereby 60 percent of the shares in Nordic Regional Airlines AB would be transferred to the ownership of Staffpoint and GWS. As of 31 March 2015, Finnair has owned 100 percent of the company during an interim permission by the Finnish Competition and Consumer Authority (FCCA). Due to the negotiations being protracted and the interim permission expiring, Finnair has now filed an application with the FCCA to approve the current ownership structure.
However, negotiations on the ownership arrangements of Nordic Regional Airlines AB continue, and Finnair expects the transaction to proceed within the next few months. The delay is due to the need of the parties to assess even more thoroughly the alternative traffic models of regional flying in a constantly developing operating environment.
Nordic Regional Airlines AB owns the entire share stock in its Finnish subsidiary Nordic Regional Airlines Oy (Norra). Norra operates a fleet of 26 ATR and Embraer planes on Finnair’s domestic and European routes. The company previously operated under the name Flybe Finland Oy.
On 7 January 2015, Finnair signed a Memorandum of Understanding with Staffpoint and GWS on a transaction whereby Staffpoint and GWS would jointly acquire from Flybe Ltd its 60 percent majority stake in Finnair’s and Flybe Ltd’s joint venture company, Nordic Regional Airlines AB. While the negotiations continued, Finnair acquired Flybe Ltd’s stake, and Flybe Nordic was thus transferred entirely to Finnair’s ownership on 31 March 2015. Finnair has issued stock exchange releases on the Norra transactions on 12 November 2014, 7 January 2015, 29 January 2015 and 31 March 2015.