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Flybe plans 300 job cuts in revamp programme | Flybe plans 300 job cuts in revamp programme |
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Regional airline Flybe has said it is planning to cut about 300 jobs as part of a programme to return the carrier to profitability in 2013-14. | Regional airline Flybe has said it is planning to cut about 300 jobs as part of a programme to return the carrier to profitability in 2013-14. |
The Exeter-based airline said the cuts would lower UK staff numbers by 10%, reducing costs by £35m. | The Exeter-based airline said the cuts would lower UK staff numbers by 10%, reducing costs by £35m. |
href="http://otp.investis.com/clients/uk/flybe/rns/regulatory-story.aspx?cid=59&newsid=306848" >Flybe said it did not expect "significant" changes to the number of its UK bases or routes, but said it would be reviewing its network. | |
The airline reported a loss of £1.3m in the six months to 30 September. | The airline reported a loss of £1.3m in the six months to 30 September. |
That compared with a profit of £14.3m a year earlier. The airline has blamed its poor results on rising fuel costs and falling demand because of increases in air passenger duty. | |
'Disappointed' | |
Under the turnaround plan, the company said it would reorganise itself into two divisions. | Under the turnaround plan, the company said it would reorganise itself into two divisions. |
Flybe UK will cover all UK-based scheduled flight services, while Flybe Outsourcing Solutions will cover all outsourced services such as contract flying and training. | Flybe UK will cover all UK-based scheduled flight services, while Flybe Outsourcing Solutions will cover all outsourced services such as contract flying and training. |
The job losses will be seen in the Flybe UK business, with 20% of management posts going and 10% of support and production roles being cut. | |
The airline said consultation with affected staff and their trade unions would start immediately. | |
As well as job cuts, Flybe said it would be seeking to cut costs with suppliers, start a fuel efficiency programme and introduce more automated check-ins. | |
"I am extremely disappointed that many valued and hard-working colleagues may have to leave the organisation," said Flybe chairman and chief executive Jim French. | "I am extremely disappointed that many valued and hard-working colleagues may have to leave the organisation," said Flybe chairman and chief executive Jim French. |
"We will make every effort to minimise the impact and to offer support wherever possible in the transition." | "We will make every effort to minimise the impact and to offer support wherever possible in the transition." |
In a trading update, Flybe said passenger numbers had risen by 1.7% to 1.8 million in the final three months of last year. However, passenger revenues fell 1.2% to £136.9m and costs also rose. |