UK-based regional airline Flybe has agreed to sell its stake in its Flybe Nordic joint venture with Finnair for one euro following the companies’ inability to agree to a plan to resolve profitability “issues.”

Flybe Nordic owns all of Finnish subsidiary Flybe Finland, which controls Finnair’s regional airline operations. Consequently, Finnair has begun mapping alternatives to continue Flybe Finland’s regional flying “with a cost-effective business model” and new ownership structure for Flybe Nordic. The alternatives include a potential new majority shareholder for Flybe Nordic, said Finnair in a statement released Wednesday.

Finnair and Flybe began their cooperation in 2011, when they founded the Flybe Nordic joint venture, of which Flybe owns 60 percent and Finnair 40 percent.

The companies have already for some time discussed the restructuring and cost saving strategy for Flybe Finland, said Finnair. Under a recently signed agreement between Flybe and Finnair, Flybe will exit Flybe Nordic by the end of the year, subject to approval being received from competition authorities. Meanwhile, Flybe Finland will continue operations as normal.

“The financial performance of our joint venture has not developed according to the expectations of its shareholders,” said Finnair CEO Pekka Vauramo. “We haven’t been able to arrive at a common view to resolve the profitability issues, and therefore the companies have agreed to discontinue the cooperation. Finnair aims to find a new majority shareholder and a business model that would enable the development of regional flying in a financially sustainable way.”

Flybe Finland started operating codeshare flights from Helsinki in August 2011 with ATR 72s and a pair of Embraer E170s. In October 2012, the cooperation expanded to cover European flights with Embraer 190s as contracted flying, after which Flybe Finland has operated a third of Finnair’s European traffic.