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  • UK's Flybe cuts 300 staff in bid to return to profits

UK's Flybe cuts 300 staff in bid to return to profits

UK regional carrier Flybe is to axe 300 staff as part of an effort to restore profitability to the company in 2013-14.

The airline group has detailed the first stage of a two-stage turnaround plan, as it released an interim financial statement covering the third quarter to the end of December 2012.

Flybe says it is taking "significant actions" across the company and setting operational profit targets "backed by a clear plan".

This will include reducing the number of divisions in the company to two: Flybe UK and Flybe Outsourcing Solutions.

Flybe UK will undergo a cost-reduction programme including a 20% cut in management headcount and another 10% cut in production headcount.

It says it will cut 300 personnel, reducing UK-based staff by 10%, and potentially outsource some of its support activities.

But it says it does not see any "significant change" to its route network or the number of UK bases from which it operates.

This plan will save £35 million ($55 million) by 2014-15, the company says, adding that the cost of the restructuring will be around £10-12 million.

The second stage of the turnaround plan, yet to be fully disclosed, will deal with revenue enhancements.

Flybe says the plan provides a "clear short-term roadmap" to address its "immediate challenges", specifically the profitability of its UK flying business.

Its new Outsourcing Solutions division - to be headed by Mike Rutter - will concentrate on the company's independent scheduled contract flying work, which it performs for operators in Europe.

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