Flybe to expand Manchester base

AIRLINE Flybe is looking to increase its activity from Manchester Airport.

It is already one of the largest operators with 20 routes and up to 108 flights a day to and from the city.

Chief commercial officer Paul Simmons told TheBusinessDesk.com that the airline plans to grow its network out of the airport after a year of cutbacks elsewhere in the country.

The Exeter-based business has axed around 1,100 staff, or 40% of its 2,700 employees, and has since raised £150m on the stock market to fund future growth.

He said: “We have finished the organisational changes which we had to do. Unfortunately a large number of people ended up leaving the company but we knew we now have a thinner, leaner organisation. The analysts consensus is we’ll break even or make a small profit this year, from a £40m loss last year and we’ve managed to stabilise and raise capital in the City.

Mr Simmons added: “We’re still very strong in Manchester. We’re the biggest airline in terms of movements and we intend to stay that way and continue to try and grow our network out of Manchester. We’re not looking at new routes, but frequency, particularly with business travellers in mind. We’re using Manchester increasingly as a hub. We see the airport as the glue that holds the network together.”

In a trading update the company said that despite a 4% capacity reduction in the fourth quarter to 2.2m seats, passenger volumes grew 6% year-on-year to 1.6m, as a result of its competitive pricing strategy with higher passenger volumes more than offsetting lower yields, leading to a 4% increase in passenger revenue per seat to £49.80.

It added that forward sales performance for Summer 2014 remains positive, with 20% of seat capacity sold, compared with 17% by the end of March last year.   

Following last year’s cuts the airline has rebranded and yesterday unveiled a new purple aircraft which flew from Exeter to Manchester. It has also launched a “60:60 guarantee” that gives passengers a £60 credit towards their next flight booked within 60 days if, through the fault of the airline, their flight arrives more than 60 minutes late.