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Flybe to make 500 redundancies in turnaround plan

UK airline Flybe says it will make 500 redundancies next year and possibly remove some routes as part of a cost saving plan.

The Exeter-based operator posted pre-tax profits of £13.8 million for the sixth months to the end of September, compared with a loss of £1.6 million the year before.

The firm said it was on track to make £40 million savings this year from a turnaround plan and major reshuffle of the management team is currently taking place.

A joint venture with Finnair had helped the airline to increase revenues while overall passenger numbers were up as costs per seat were down.

CEO Saad Hammad, said: “I joined Flybe in August this year. It was clear to me that the existing Phase 1 and 2 cost savings were necessary, but we simply needed to do more and to do it immediately.

“The business needed action now and so today we are explaining our next phase which encompasses a review of everything we do and how we do it. Most of the immediate actions are completed, being implemented or already being consulted on.

“Unfortunately there is a proposal for further redundancies. We will consult with the trade unions and employees to ensure that this is done fairly and delivers the right outcome for the business.

“While the economic environment remains challenging, the Board is confident that the actions announced today will provide a firm basis for future growth.

“We will make Flybe the best local airline in Europe. This is ambitious, but achievable provided that we can transform our cost base and efficiency now.”

This was posted in Bdaily's Members' News section by Tom Keighley .