Nilfurther,
The balance sheet is showing an operating profit for the first time in 5 years. Surely this is evidence enough of the strides Flybe has made and indicates the current growth strategy and plans to be correct. There are not many airlines recording any increase in yields.
The reason for the change in financial performance is directly related to the change over to the Q400, which yes may be a little unreliable at times, but is infact comparable to the 146 in dispatch reliability, and new routes that are already recording profits.
The 737's to be launched at BHX will be damp lease as previously advised. There is, as yet, no final decision yet made on either 737/319. There is little point in being forced into retraining 146 drivers onto 737 yet until this decision is final. Using damp lease aircraft will also allow the schedule to be flown whilst some 146 drivers are retrained onto the new type being ordered. Flybe's hand at BHX appears to have been forced somewhat by BMIBaby and hence the reason for using a damp lease provider.
The recent investment of some £4.5million in new maintenance hangars in Exeter that can accomodate 737/319 aircraft also indicates the planned move to larger aircraft is not just a pipe dream.
There is no question that the LGW slots are valuable however Flybe now have defendable bases for the first time, demonstrated by their recent commitment in BHX. Flybe may have struggled in their past incarnations to find their niche, but that is quite clearly not the case any longer.