Regional airline Flybe has secured a new franchise agreement with Eastern Airways (UK) to fly Loganair's existing Flybe-branded routes from Aberdeen, Edinburgh, Glasgow and Manchester.
The five-year deal will see Eastern provide four aircraft under the Flybe brand in a joint revenue and risk sharing agreement.
The deal will see Eastern Airways fly routes previously flown in a franchise agreement with Loganair, namely Aberdeen-Sumburgh, Glasgow-Sumburgh, Edinburgh-Sumburgh, Glasgow-Manchester, Aberdeen-Kirkwall, and Glasgow-Stornoway.
Flybe announced last November its franchise agreement with Loganair would end in August 2017 .
In addition, Eastern will also fly routes between Aberdeen, Norwich, Teesside, Newcastle, Southampton, Leeds, Cardiff and Paris from September 1.
Eastern, based at Humberside Airport, operates scheduled domestic and short haul international services and private charter services and has hubs in Aberdeen, Norwich, Teesside, Newcastle, Southampton, Leeds, Cardiff and Paris.
Flybe said it is aiming for contracts to be finalised and signed within the next few weeks with a view starting operations under the new arrangements from 1 September 2017.
The airline said the franchise deal will “significantly improve connectivity for Scotland” .
Flybe chief executive Christine Ourmieres-Widener, said: “This alliance with Eastern Airways is an excellent opportunity to strengthen the Flybe network.
“We already operate flights at a number of common airports and this will enable passengers to connect to a greater number of destinations, across the UK and into Europe, all booked through Flybe.com.
“Eastern will operate routes from Glasgow, Edinburgh, Aberdeen and Manchester to offer an enhanced service to passengers based in Scotland and travelling to Scotland.
“Combined with our flights to Heathrow from Edinburgh and Aberdeen, this demonstrates our strong commitment to serving Scotland.”
Richard Lake, chief executive of Eastern Airways, added: “This alliance will benefit both airlines as not only does it strengthen Flybe's network, but broadens our distribution and enhances connection opportunities for our customers through its global airline association.
“We have specialised in fixed-wing flying in the oil and gas market for many years and our expertise will provide a greater opportunity to further develop offshore connectivity to Flybe's network.”
Loganair managing director Jonathan Hinkles said he was “extremely disappointed and surprised” at the Flybe/Eastern Airways announcement, which will see Loganair and Flybe directly competing on the same Scottish routes.
He said: “We have been negotiating in good faith with senior Flybe staff about a continuing codeshare relationship to ensure that customers can access ongoing connections from all of Loganair’s extensive Highlands and Islands network to the rest of the UK.
“Flybe’s decision means it will no longer be possible to book many of these connecting flights in a single booking, adding cost and complexity for the customer.
“Flybe is intent on challenging us head-to-head on a few of our traditional and established routes that make up our extensive network in Scotland, but we are Scotland's Airline, and I can promise them that we are up for the fight.
“We’ve invested a huge amount in the infrastructure – engineers, ground handling, support staff – to provide our Highlands and Islands services and we’re here to stay.”
Hinkles added: “Although we've been flying as a Flybe franchisee on these routes for the last eight years, we have been serving these communities for over 50 years. In our various stations from the Western Isles to Orkney and Shetland and in our city bases like Aberdeen and Inverness, we have staff who know the importance of our services to local people.”