FlyBE, the UK regional low-fares airline, is in negotiations with Airbus and Boeing and aircraft lessors over the acquisition of nine to 12 150-seat aircraft to expand its operations during the next three years.

The airline announced yesterday the launch of seven European routes from Birmingham International airport, one of its main UK hubs, which will bring it into head-to-head competition with BMIbaby, the low-cost arm of BMI British Midland.