Budget airliner Flybe Group is all set to slash 300 jobs under a restructuring programme to get back to profitability in 2013-14 by reducing costs by £35m. Flybe has announced its intent to cut 10% of its 3,000-strong UK staff, besides planning to outsource for support functions such as ground handling and onboard catering.
As a part of the reorganisation, Flybe which operates flights in and out of Southampton Airport, will reorganise into two divisions- Flybe UK and Flybe Outsourcing Solutions. 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 Flybe UK business. Flybe job cuts will affect staff in support functions such as human resources and IT, while around a fifth of its management team jobs are being cut. Furthermore, Flybe, which flies from airports including Bristol, Cardiff, Doncaster, Edinburgh and East Midlands, is also putting its network of 13 UK bases under review and will give further details in the summer.
The regional airline said that it would begin consultation process with axed staff and their trade unions immediately. The airline reported an annual loss of £6.4m in the year to 31 March 2012, blaming the losses on high fuel costs and falling numbers of passengers.
Expressing his dejection at Flybe job cuts, Jim French, the airline’s chairman and chief executive officer, said he was “extremely disappointed that many valued and hard-working colleagues may have to leave the organisation” in a decision he said the board had “not taken lightly.”
Flybe’s shares fell 6% to 47.25 pence in early trading this morning on the London Stock Exchange. They have lost about 21% of their value over the last year.