Flybe today warned it will axe 300 staff including a fifth of its management team in a bid to save £35 million and try to pilot the airline back to profit.
The regional carrier added that although it doesn’t expect “significant” changes at its 13 UK bases or on its routes, Flybe’s entire network would face a “thorough review”.
The turnaround plan sees the company split itself into two divisions: Flybe UK covering all scheduled flights, and Flybe Outsourcing Solutions dealing with contract flying and training. At Flybe UK it is aiming to break even on each seat by next year, make 60p per seat the next year and make a £3 profit on each seat by 2018.
The airline is also considering outsourcing the maintenance of all its bases and it wants check-in to be more computerised to save cash.
Flybe reported a loss of £1.3 million in the six months to September 30 — down from a £14.3 million profit a year earlier. Over the four months to today, it said revenues inched up 2.5% to £143.2 million, mainly because of more contract flying. “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. “However, any significant change to the UK economy or a rebalancing of Air Passenger Duty are likely to be some way off.”
