Flybe. 3rd November 2006
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**FLYBE AGREES TO ACQUIRE BA CONNECT**
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Today marks a major step in Flybe's history as we are pleased to
announce we have reached agreement in principle with British Airways to acquire British Airways' BA Connect airline.

The deal, which we expect will be completed by the end of this year,
will mean Flybe will become EUROPE'S LARGEST REGIONAL AIRLINE.

Since the launch of Flybe over 5 years ago we have been successfully
serving UK and European regions and continued to expand our network to allow more travellers to benefit from Flybe's unique added value service and high frequency flights.

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**SO WHAT WILL THIS MEAN TO YOU?**

Well, it will allow Flybe to offer even more opportunities to travel
from your region to other destinations across the UK and Europe on our
existing network and to many new destinations.

Acquiring the BA Connect route network means we will provide an even
wider selection of services into key European cities such as Paris, Frankfurt,
Dusseldorf and Milan.

We will continue to offer low fares, and through integration of
additional aircraft will seek to offer you the UK's best selection of daily
flights on many of Flybe's existing routes.

The New Airline

--> 10m passengers

--> Travel from 59 UK and European airports

--> Fly across 159 routes, including 35 new routes

--> Fly from more UK airports than any other airline

Flybe is committed to retaining its added value services for the
business traveller, with its Flybe Economy Plus product, a brand new Frequent
Flyer programme, which will remain the UK's most generous and developing new and improved Executive lounges.
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**SO WHEN WILL YOU START TO SEE CHANGES?**

Once the acquisition is completed, we expect that from early 2007 you
will start benefiting from the new larger Flybe, with Europe's widest
selection of regional flights being on sale through Flybe.com.

Please continue to use Flybe.com as you have been for bookings and other
travel services as we progress the exciting changes outlined above.

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The Flybe team will continue to keep you updated on this exciting next
step and we look forward to your continued support as we deliver even greater
choice of sustainable regional transport to YOU and YOUR REGION.

Kind regards

Jim French
Flybe Chairman and Chief Executive