Flybe plans 300 job cuts in revamp programme

Regional airline Flybe is planning to cut about 300 jobs as part of a programme to return the carrier to profitability in 2013-14.   The Exeter-based airline said the cuts would lower UK staff numbers by 10%, reducing costs by £35m. Flybe , which reported a loss of £1.3m in the 6 months to 30 September., said it did not expect “significant” changes to the number of its UK bases or routes, but said it would be reviewing its network.  Flybe will reorganise itself into two divisions, with one to cover all UK-based scheduled flight services, and the other to cover all outsourced services such as contract flying and training. The job losses will be seen in the Flybe UK business, with 20% of management posts going and 10% of support and production roles being cut. As well as job cuts, Flybe said it would be seeking to cut costs with suppliers, start a fuel efficiency programme and introduce more automated check-ins.

 

23 January 2013  (BBC)

Flybe plans 300 job cuts in revamp programme

FlyBe aircraft
The airline is reorganising itself into two divisions

Regional airline Flybe has said it is planning to cut about 300 jobs as part of a programme to return the carrier to profitability in 2013-14.

The Exeter-based airline said the cuts would lower UK staff numbers by 10%, reducing costs by £35m.  [ Wikipedia  says Flybe employs some 2,800 staff].

Flybe said it did not expect “significant” changes to the number of its UK bases or routes, but said it would be reviewing its network.

The airline reported a loss of £1.3m in the six months to 30 September.

That compared with a profit of £14.3m a year earlier. The airline has blamed its poor results on rising fuel costs and falling demand because of increases in air passenger duty.

‘Disappointed’

Under the turnaround plan, the company said it would reorganise itself into two divisions.

Flybe UK will cover all UK-based scheduled flight services, while Flybe Outsourcing Solutions will cover all outsourced services such as contract flying and training.

The job losses will be seen in the Flybe UK business, with 20% of management posts going and 10% of support and production roles being cut.

The airline said consultation with affected staff and their trade unions would start immediately.

The Prospect union, which represents some Flybe engineers, said it did not support the airline’s plans.

“While we acknowledge that the UK’s continuing economic weakness is having a negative impact on business, we have yet to be convinced that the combination of job losses and the outsourcing of line maintenance put forward today provides the answer,” said Prospect negotiator John Stevenson.

As well as job cuts, Flybe said it would be seeking to cut costs with suppliers, start a fuel efficiency programme and introduce more automated check-ins.

“I am extremely disappointed that many valued and hard-working colleagues may have to leave the organisation,” said Flybe chairman and chief executive Jim French.

“We will make every effort to minimise the impact and to offer support wherever possible in the transition.”

In a trading update, Flybe said passenger numbers had risen by 1.7% to 1.8 million in the final three months of last year. However, passenger revenues fell 1.2% to £136.9m and costs also rose.

http://www.bbc.co.uk/news/business-21157000 

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See earlier

 

Flybe shares slump 20% on revenue warning due to declining demand

Flybe has warned that weak UK sales are causing it problems.  Sales in the three months to December 2011 were down 8% on a year earlier. Flybe said conditions in the UK domestic air travel market had continued to deteriorate and this trend would continue. There has been a general decline in demand for air travel during the economic downturn. Flybe said these conditions “will force” rationalisation of the European short-haul airline market. Shares in the airline have fallen more than 80% since the start of 2011. UK sales make up about 70% of Flybe’s revenue, but the airline is looking to expand into Europe.16.1.2012

Flybe shares slump 20% on revenue warning due to declining demand

 

 

and

UK’s domestic air travel boom is over, says Flybe

Flybe has declared an end to the boom in domestic air travel and reports a deepening drop in demand for British routes. The unreliability of demand has led to 2 profit warnings this year. Flybe said winter bookings were down 1% compared with last year, while last month they forecast a 1% increase. UK domestic routes are 70% of Flybe’s passengers. The CAA says domestic air travel fell 20% over the past 4 years, as an over-supplied market bottomed out.9.11.2011  http://www.airportwatch.org.uk/?p=4685