The operator of the Aer Lingus Regional route network has said it intends to play a leading part in further consolidation among Europe's smaller airlines despite losses mounting in its latest financial year.

Stobart Group has said it does not intend to make a bid for Flybe after failing to agree "satisfactory terms" with the regional airline.

Regional airline Flybe would view a takeover swoop by Stobart Group as "opportunistic" if an official bid is made, the Press Association understands.

An emergency landing has taken place at Cork Airport this morning, with reports that the cockpit on the Aer Lingus plane filled with smoke.

Aer Lingus Regional — the airline’s secondary destination service — posted a fourth consecutive month of passenger growth at Cork Airport in July.