THE airline owned by the family of the late Jack Walker is expected to raise as much as £100million when it is listed on the Stock Exchange next year.

The low-cost airline Flybe, bought by the steel magnate in 1984 when it was known as Jersey European Airways, is one of the largest budget airlines in the UK.

The airline hopes to use the funds to part-fund an investment in new aircraft, to expand its fleet.

The firm is owned by one of the family trusts set up to oversee the estate of millionaire steel magnate and Blackburn Rovers benefactor Jack Walker, and the floatation will see part of the family's stake in Flybe sold off.

Flybe has recently been undergoing a programme of modernisation, and last year announced it was to buy £550million of new aircraft from Brazilian manufacturer Embraer.

The order is expected to help Flybe update its fleet, and cut costs of fuel and maintenance. The first Embraer aircraft was delivered at the weekend.

Flybe currently flies to France and Spain, although domestic flights account for most of its business.

The firm expects to fly more than six million passengers this year, with an estimated turnover of £350million.