Flybe Announces Plans To Cut 500 Jobs

11 November 2013, 10:30 | Updated: 11 November 2013, 10:34

Southampton Airport's largest operator Flybe has warned that it plans to axe another 500 jobs in the latest round of cost-cutting at the struggling regional airline business.

The Exeter-based carrier's new chief executive, Saad Hammad, will also review unprofitable routes and bases and improve aircraft and crew utilisation.

It's not yet known where the jobs will go from and whether Southampton Airport will be affected.

The measures are expected to save the airline £26 million a year from next year, on top of previous initiatives to save £40 million this year and £45 million in 2014/15.

The company said:

"This will require tough decisions to be taken over the coming months and, regrettably, this proposal may result in the loss of around 500 jobs spread across the business.''

Consultation with trade union and staff association representatives on the proposals will start shortly.

The British Airline Pilots' Association (Balpa) said it was shocked by the announcement and called on the Government to play its part by reducing the impact of Air Passenger Duty.

Balpa general secretary Jim McAuslan, said:

"This is a distressing day for the dedicated pilots who loyally serve Flybe and its passengers day in, day out and we will be supporting them throughout this difficult redundancy process.

"Pilots are working with Flybe to secure the future of the airline, which is vital to connecting the country and driving growth and prosperity outside of London.''

The airline's half-year results today showed it grew passenger numbers by 5.6% to 4.3 million, while it returned to profit with a surplus of £13.8 million.

Having joined Flybe in August, Mr Hammad said:

"It was clear to me that the existing phase one and two cost savings were necessary, but we simply needed to do more and to do it immediately.

"The business needed action now and so today we are explaining our next phase which encompasses a review of everything we do and how we do it.''

Mr Hammad's regime has already seen the departure of a raft of top executives.

After entering its recent period of turbulence, Flybe has focused on shoring up its core regional bases in Southampton, Manchester, Birmingham and the Channel Islands, selling its Gatwick Airport runway slots to easyJet for £20 million.

Unite union national officer Oliver Richardson said:

"Cabin crew have already been through one major reorganisation at Flybe only recently and they will be angry that once again they are on the front line of more cuts.

"This is clearly a very difficult time and Unite will be doing everything possible to provide support to the workforce.

"Over the coming weeks the union will scrutinise every inch of the company's business plans in order to protect as many jobs as possible and to avoid compulsory redundancies.

"The company has been open with the union about its plans and we hope to use this relationship in order to mitigate the impact of this decision."