Flybe, which is a well-known regional airline, finds itself between a rock and a hard spot. This airline has announced that it must find more ways to save money as it continues a downward spiral. This time, it plans to cut more than 500 jobs in order to save some much-needed cash.
Saad Hammad, the brand new chief executive of Flybe, said that he hopes this measure will save the company more than £26 million a year, starting next year. He said that this money will be saved on top of the £40 million that he has saved this year and the £45 million that he plans to save throughout 2014 and 2015.
One way that Flybe is looking to save money is by improving its flight schedule. It is in the process of reviewing all of its routes. All of the routes that are no longer profitable or not profitable enough will be axed in favour of more popular routes.
In a public statement, Flybe said that it is extremely sorry that it has had to make this tough choice to let so many workers go. These jobs cuts will be coming over the next few months. This will result in more than 500 people being cut from the Flybe workforce.
The airline did say that it is about to hold talks with the staff associations and trade unions that represent these workers. The British Airlines Pilots’ Association said that it was extremely taken back by this announcement. The association is currently asking the government to help out by lowering the negative impact that Air Passenger Duty has on airlines.
Jim McAuslan, the general secretary of the British Airlines Pilots’ Association, said that this is simply terrible news. He cannot believe that Flybe will simply cut pilots that have worked so loyally for the carrier and the passengers that fly every day. The association, however, will be supporting these pilots every step of the way. The pilots that remain with Flybe will need to work hard to secure the future of this airline. It is apparently going through some tough times, and workers need to pull together more than ever to save it.
Despite this announcement, it has not all been bad news for Flybe. In fact, the airline did say that it was able to increase the number of passengers it flew during the first half of the year by 5.6 percent. This means that the airline was able to fly at least 4.3 million passengers.
Hammad added that it was clear to him, after joining Flybe in August, that all of the cost-saving plans that were in effect at Flybe were very necessary. However, he also saw that more has to be done to save the airline. The company needs to see action right away, and this announcement marks the start of that action.