Flybe restructures

Exeter-based Flybe, which has struggled in terms of profitability since it floated on the London Stock Market in December 2010 at 295p (Friday 25 January closing price 47.5p) is to cut around 300 jobs in its UK operation as part of a restructuring plan aimed at delivering £35m of savings by 2014/15.

Flybe has been particularly hit by two major factors, the downturn in the British economy, and the double tax (APD) its passengers have to pay on domestic flights, something Chief Executive Jim French calls "brutal and unfair" emphasising that it is UK airlines and passengers that are being penalised.  Domestic flight numbers are down 20%. 

The company said it had no plans "at this stage" to close any of its 13 UK bases or make any changes to its route network.  With a positive note it has announced a daily Birmingham – Lyon service from 1 May, flown by an Embraer 175.

The airline is also considering outsourcing some support activities in addition to the redundancies, having already outsourced its call centre last month with the loss of 55 jobs.  More than 100 jobs in catering, ground services and line maintenance could be transferred out of the company. www.flybe.com

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