British regional airline Flybe agreed to buy 20 aircraft from Canada's Bombardier for USD$485 million on Thursday, doubling its turboprop fleet as it prepares to expand aggressively in Europe.

Flybe also said it had taken options for another 20 of the 70 seat Q400 planes and was still considering purchasing up to 12 larger jet aircraft from Airbus or Boeing.

"We have identified a lot of growth opportunities in the UK and there is no reason at some future stage this business model could not be expanded into continental Europe," Flybe Managing Director Jim French said.

Flybe, which bills itself as Europe's third-largest low-cost carrier, said it had agreed to buy 20 Q400s over four years for USD$485 million, converting previous options into firm orders.

Options for a further 20 could lift the value of the whole deal for Bombardier closer to USD$1 billion.

The deal follows Flybe's USD$362 million order for 17 Bombardier Q400 planes in 2003 on top of the four it already owned.

Flybe, which is smaller than low-cost carriers Ryanair and easyJet but flies in different markets, has expanded rapidly since changing its brand from British European in July 2002.

French said the company, which flies from regional UK airports, expected to increase passenger numbers 15 percent each year. Flybe's pre-tax profit for the half-year end-September 2004 was GBP