Flybe to cut UK staff numbers by 10%
Regional airline reorganising into two divisions
By CFOWorld.co.uk staff | CFO UK | Published 11:06, 23 January 13
UK regional airline Flybe is to cut its staff by 10 percent or 300 by head count, and will be restructured into two divisions at it launches its bid to return to profitability by 2013-14.
The Exeter-based airline said on Wednesday that the cuts would reduce operating costs by £35 million but added that there would no "significant" changes to the number of its UK bases or routes.
Flybe also said it would reorganise itself into two divisions – Flybe UK and Flybe Outsourcing Solutions. The former will cover all UK-based scheduled flight services, while the latter will cover all outsourced services such as contract flying and training.
Most of the stated job losses will occur at the Flybe UK business, with 20 percent of management posts and 10 percent of support and production posts cut.
Flybe chairman and chief executive Jim French said, "I am extremely disappointed that many valued and hard-working colleagues may have to leave the organisation. We will make every effort to minimise the impact and to offer support wherever possible in the transition."
The airline also said it would be seeking to cut costs with suppliers and commence a fuel efficiency programme. In a trading update, Flybe said passenger numbers rose by 1.7 percent to 1.8 million in the final three months of 2012. However, passenger revenues fell 1.2 percent to £136.9 million.
Share:Facebook Twitter Google Plus Stumble Upon Reddit Share This Email this article
Finance teams need to learn soft skills as corporate priorities evolvemore ..
Tech London Advocates members getting frustratedmore ..
Ian Griffiths to take up non-executive director role at packaging companymore ..
Headline rate of unemployment at 6.9% as wages rise above inflation ratemore ..
The benefits of board service for CFOsmore ..
Vince Cable moots women-only shortlists just ahead of international women’s daymore ..