Dublin based CityJet has agreed to merged with Spain’s Air Nostrum to form what will supposedly be Europe’s biggest regional carrier. The two companies have just struck a deal to operate as a new holding company, though they would continue working as separate units. According to sources, the business will have a combined fleet of 100 aircraft, and revenues close to €700m per annum.

Founded in 1993, CityJet owns 44 aircraft, operating across nine European bases. Air Nostrum on the other hand, provides leases and operates flights to over 50 airports in Europe and Africa.

Reportedly, the partnership is targeted toward scoring a greater share of the wet lease industry, where the airline can operate regional routes for third-party carriers. Details related to the ownership or corporate structure were not publicized as the deal is awaiting regulatory approval from the EU.

Pat Byrne, CEO of CityJet stated that the airlines have a lot in common, including their Bombardier Aircraft and focus on wet-lease contracts. To focus on wet-lease, last year the Irish carrier rejected staff from its London city base, axed routes to Paris and Nantes and reduced flights to Amsterdam. At the time, Byrne addressed the staff saying that the airline is aiming to operate 80% of its aircraft on a wet-lease basis.

Incidentally, in 2007 CityJet was sold to Air France, however, after a series of losses, the German investor Intro Aviation put forth a proposal of purchase for the same in 2014.

For the record, as on today CityJet has 1,250 employees across nine European countries and operates a wide network of services through wet lease contracts with multiple regional airlines, complete with a fleet of over 40 aircraft. Byrne further added that through this collaboration, CityJet will be able to cater to the specific needs of customer airlines through safe, dependable and quality assured operations.