Flybe to cut jobs in drive towards profitability
THERE are concerns about job losses at Manchester Airport following an announcement by airline Flybe that it is to make 300 staff redundant.
While the airline is headquartered in Exeter, it is one of the largest airlines in terms of traffic movement at Manchester.
Te airline has announced a turnaround plan to return it to profitability in 2013/14.
It said it aims to create a leaner more focused business, with the number of divisions reduced to two, Flybe UK and Flybe Outsourcing Solutions.
In Flybe UK it is envisaged this will result in around 300 roles being made redundant in the business, a 10% reduction in UK based staff (including Isle of Man and Channel Islands). This will include a 20% cut in management.
And further support activities could be outsourced. The group’s call centre was outsourced in December.
Flybe says it does not currently envisage any significant change to the number of UK bases or its route network at this stage.
The group is hoping to deliver £35m of savings by 2014/15 and it hopes this will result in a new slimline business model for the division.
Costs of restructuring are estimated at between £10m and £12m, the majority of which will be provided in the 2012/13 accounts.
Phase two of the Flybe UK plan will focus on revenue enhancements and “on-going business efficiencies”.
The new Flybe Outsourcing Solutions business aims to build upon Flybe’s success in European contract flying and drive growth by bringing together the previous Flybe Europe and Aviation Support divisions to provide an integrated outsourcing offer.
In an interim management statement for the period to 23 January 2013, Flybe’s total revenue under management showed an increase of 17.2% to £193.9m, with the growth being driven predominantly by Flybe Finland, the joint venture with Finnair.
Group revenue increased by 2.5% to £143.2m, primarily driven by the increase in contract flying revenue.
Operated seats flown under management (including contract flying and charter) were 3.9m, up by 13.5% from 3.4m in Q3 2011/12.
Flybe UK generated total revenues of £137.1m in Q3 2012/13, up 2.5% on Q3 2011/12. Passengers totalled 1.7m, up 3% on Q3 2011/12.
