SOUTHAMPTON Airport’s largest carrier is gearing up for a reported £200m stock market flotation this week.

A market offering of Flybe, which has its biggest base in the UK at Southampton, would generate a potential windfall for staff who own nearly a tenth of the shares.

Flybe was one of only three major European airlines to report profits during the recession and will use the cash raised to fund an acquisitions drive.

Despite losing £21m during the ash cloud crisis, Flybe posted pre-tax profits of £6.8m on sales of £570.5m in the year to March 31, although it was down almost half from £12.8m the previous financial year.

The carrier is said to harbour plans to double in size through organic growth and buying overseas carriers such as Swiss regional airline Flybaboo and a Finnish carrier.

Chief executive Jim French said: “If you’re making a profit during the recession, then that’s the time to expand your business.”

Flybe already operates 207 routes serving 13 countries. Eight of its fleet of 68 aircraft are based at Southampton.

It flew 7.2 million passengers in the financial year, slightly down on 7.3 million the year before, and is now the biggest carrier of UK domestic passengers.

The Flybe brand is eight years old but has traded under various names for the past 20 years.

It was set up as Jersey European Airways and then became British European Airways as it expanded with the backing of the late Sir Jack Walker, the steel tycoon who owned Blackburn Rovers football club.

The Walker family trust owns nearly 70 per cent of Flybe and is not expected to sell any of its shares in the float.

British Airways owns 15 per cent of the shares, which it acquired when Flybe bought BA’s lossmaking regional airline BA Connect.

Mr French owns seven per cent of the shares and Flybe staff own the remaining eight per cent.

Directors reportedly decided to press ahead with their plans to list the company at a board meeting on Friday.

The Exeter-based airline is expect to issue an “intention to float” notice by the end of this week.

Investment banks Merrill Lynch and Investec are reported to be advising on the planned float.

A spokesman for Flybe said the company did not wish to comment on rumour and speculation.