Stobart Air has invested €36 million in its fleet as the airline and will operate routes from London City Airport under the British Airways CityFlyer brand.
The company is already the franchise flying partner for Aer Lingus and Flybe, operating regional routes for the two airlines.
The airline has invested in two Embraer 190 jet aircraft under a three-year lease agreement with Limerick-based Nordic Aviation Capital.
The arrangement between the two airlines, known as an ACMI agreement, will see Stobart Air provide aircraft, crew, maintenance and insurance to BA CityFlyer for the purpose of operating routes to and from London City Airport, under the BA CityFlyer brand.
The airline also announced its intention to add 40 new people to its growing team, with recruitment for 10 captains and first officers as well as 30 cabin crew underway.
Last year, Stobart Air announced a €25-million investment in the airline, with the addition of 60 new jobs and the first three Embraer E195 jet aircraft to its fleet.
Stobart Air operates under the Aer Lingus Regional brand as part of a franchise agreement with Aer Lingus and operates Flybe routes from London Southend Airport and the Isle of Man.
Stobart Air managing director, Graeme Buchanan said: “Due to the continued and consistent growth of our airline, we are investing in our fleet and our people to deliver on our current growth strategy.
“As a regional partner to leading airlines, we constantly review our business operations and our network to position us for opportunities with key partners from the most popular cities and routes across Ireland, the UK and beyond.
“We continuously seek to provide the optimum connectivity on key routes for customers, working with our partners. We have ambitious plans to grow and develop this partnership in 2018.”
Stobart Air is on track to carry 2 million passengers in 2018 – a 17 per cent increase in passenger numbers on the previous year.
British Airways’ general manager for commercial and customer, Luke Hayhoe, said: “We are looking forward to working with Stobart Air within this new significant lease agreement. The relationship will ensure we continue to provide punctual and reliable services for our customers from the London City Airport hub.”