UK airline Flybe is close to finalizing a USD$400 million order for 20 turboprop Q400 planes with Canada's Bombardier, an industry source said on Friday.

The order is expected to be announced next week.

Flybe placed a USD$362 million order for 17 of the 70 seat planes in 2003 with an option for a further 20 which the airline will now convert into a firm order.

Flybe, which flies from regional UK airports, is also in talks with planemakers Airbus and Boeing about acquiring up to 12 new aircraft and has previously said it expected a decision in March this year.

Flybe, which bills itself as Europe's third-largest low-cost airline, has expanded rapidly since changing its brand from British European in July 2002 and flies from regional UK airports.

Exeter-based Flybe is owned by a private trust belonging to the family of the late Jack Walker, a multi-millionaire who made his fortune in steel and bankrolled Blackburn Rovers' rise to the pinnacle of English soccer.

Bombardier said back in April 2003 that the total value of the Flybe Q400 package if it converted the 20 options into orders could be worth as much as USD$818 million.

The Q400 is designed for specific use in regional and low-cost markets and flies short-haul routes.

Bombardier and Flybe declined to comment.