Tag Archives: Flybe

BBC: Flybe is in discussions with EasyJet to sell its 25 slots at London Gatwick

Flybe (Exeter) is reportedly in discussions with EasyJet (easyJet.com) (London-Luton) and others to possibly acquire its 25 landing and takeoff slots at London (Gatwick) according to this report by the BBC. Flybe has been losing money and is currently cutting costs and selling some of its assets.

Read the full report: CLICK HERE

Copyright Photo: Terry Wade/AirlinersGallery.com. Bombardier DHC-8-402 (Q400) G-JEDP (msn 4085) in the unique “Low Cost, but not any cost” color scheme approaches the runway at London (Gatwick).

Flybe:

The unique beach air service at Barra to continue

Loganair (Flybe) (Glasgow) will continue to operate its unique de Havilland Canada DHC-6 Twin Otter service to the island of Barra in Scotland. The service is unique because the STOL aircraft lands on the beach and the timetable is variable due to the changing tides. In February the Western Isles Council voted to end its subsidy for the Barra to Benbecula leg of the Twin Otter service. The service was due to end on March 31. The move was designed to enhance service to Glasgow.

Read the full account (with a video) from the STV News: CLICK HERE

However the Scottish Government has now confirmed it will “enhance” flights between Barra and Glasgow for the summer season but said they have no further plans to change the number of flights during the rest of the year according to this report by the Stornoway Gazette. The unique “beach service” will continue.

Read the full report: CLICK HERE

Copyright Photo: Robbie Shaw. Loganair’s de Havilland Canada DHC-6-300 Twin Otter G-BVVK (msn 666) makes its unique landing at Barra (BRR). Barra is the southernmost inhabited island of the Outer Hebrides in western Scotland. Loganair as a Flybe franchise, operates in the brand of Flybe (Exeter).

Loganair-Flybe:

Routes from Glasgow:

Please click on the map for the full-size view.

Video:

Flybe announces a two-year plan to return to profitability, 300 jobs may get axed

Flybe (Exter) today made a major announcement for a two-year plan to return the airline to profitability. The reorganization may lead to a loss of 300 jobs. Here is the full announcement:

As part of this announcement Flybe confirmed:
- Medium term operational profit targets for the Group.
- A revised strategy to focus on two key sectors of the market – its UK scheduled services business, and the growing European contract flying market.
- Confirmation that there would be no change to its current route network, and that consumers will still enjoy the same choice of routes and airports.
- A cost reduction plan for its UK business and associated support activities which targets cost reductions both internally and externally.
- As part of the proposed cost reduction plan for the UK business, it is expected c300 roles will be made redundant.
- The total annualised benefit of the cost reduction plan will reach £35m.
- A review of the potential outsourcing of various support functions.
- The establishment of a new Flybe Outsourcing Solutions business bringing together its contract flying, maintenance and training divisions across Europe into one customer offering.

A summary of the announcement is provided at the end of this release.

Effect on UK employed Staff

As a result of the cost reduction plan announced today, Flybe UK has commenced the consultation process which may lead to circa 300 proposed redundancies. This would equate to approximately 10% of its current UK based employees.

It is expected that the majority of the proposed redundancies will, following consultation, come from Flybe’s Exeter HQ, Manchester and Newcastle.

Commenting on the plan, Flybe’s Chief Executive Jim French said: “Today’s restructuring plan for the airline has clear, two year profit targets which we believe are deliverable and realistic. A new, slimline business model for UK scheduled services underpins a turnaround which I expect will deliver a £3.00 per seat profit target in the medium term. Today’s announcement of a turnaround strategy for the UK business is a clear indication that Flybe has a plan not only to address the challenges we face, but also one to exploit the opportunities available, particularly in Europe.

“It is a matter of great regret that many valued and hard-working colleagues may leave the organisation and it was a decision I and the Board have not taken lightly ; it’s one we have tried to avoid and it is the first time in almost 30 years of business that we have had to take such action. However, faced with the brutal impact of a 160% rise in Air Passenger Duty (APD) over the past six years and the consequent 20% decline in domestic traffic over the same period, we have to recalibrate the business. There is no escape from the £68M per annum APD tax burden which Flybe has to pay as a result of increases successive governments have levied on the industry. Flybe now pays more than 18% of our ticket revenues to the government in APD, whilst other UK based carriers who operate a greater proportion of their business outside of the UK pay less than 6%.

Flybe:

Route Map (routes from Southampton):

Please click on the map for the full-size view.

Aegean Airlines to acquire rival Olympic Air from MIG for €72 million ($93.1 million)

Aegean Airlines (Athens) appears to be finally successful in acquiring rival Olympic Air (3rd) (Athens). Previously on February 22, 2010 the two Greek airlines announced they had agreed to merge. However on January 26, 2011 the European Commission rejected the merger due to anti-competitive concerns.

Now Aegean Airlines and the Marfin Investment Group, the owner of Olympic Air, have agreed to a buy-out by Aegean of Olympic Air for €72 million ($93.1 million). Initially the two airlines will be operated as separate brands and airlines but the deal is still subject to the same anti-competitive concerns of the European Commission.

Both airlines have been losing money, especially with the austerity measures and EU protests in Greece.

Aegean Airlines has issued the following statement:

Aegean Airlines and Marfin Investment Group agreed on October 22, 2012 on the sale of 100% of Olympic Air to Aegean.

Following the completion of the transaction, Olympic Air will become a subsidiary of the listed Aegean. The brand names and logos of the two companies will be maintained and each will have distinct aircraft and flight staff. The unification of administrative, planning, purchasing and commercial functions will lead to substantial economies of scale, in buying power and elimination of duplicate systems. Fleet usage and network planning will be optimized to improve efficiencies and connectivity while improving coverage and product offer.

The deal is subject to approval by the Competition Authorities, a process which will also determine the timing of its execution.

The consideration for 100% of Olympic Air has been set at €72 million with payment in installments to MIG by Aegean. The shareholding structure of Aegean is not affected by the transaction.

Theodoros Vassilakis, Chairman of Aegean Airlines, commented on the deal: “Aegean Airlines and Olympic Air in recent years have invested $2 billion in a brand new fleet. Their service quality has been recognized with the receipt of numerous industry Awards. The two companies contribute in excess of €270 million to the Greek state revenues in airport taxes, fees, social security contributions. However, our subscale size, combined with the effects of the unprecedented Greek crisis, restrict our ability to successfully compete within the European and Global Aviation market leading us to further losses and further reductions of size and scope. As a result we are faced with the immediate danger of Greek Tourism, an industry essential for the country’s recovery, becoming entirely dependent on foreign carriers with permanent losses in local employment and state revenues.

Aegean still possesses the financial reserves to lead the consolidation of aviation in Greece to the benefit of tourism and state revenues as well as our employees and shareholders. The synergies from this agreement will allow us to reduce unit costs and offer enhanced network coverage with competitive prices to the consumers. We hope that all Greeks will support us in this challenging, ambitious and necessary endeavor.”

Companies’ Profiles

Fleet October 2012

	AEGEAN	OLYMPIC AIR
A321	4
A320	22	5
A319	3	2
Airbus Α320 Family	29	7


Bombardier Q400	0	10
Bombardier Dash 8-100	0	4
Total	29	21

Routes (Scheduled network – Summer 2012)

	AEGEAN	OLYMPIC AIR
Domestic	19	38
International	51	7

Annual Financial Results FY 2011 (in million €)

	AEGEAN	OLYMPIC AIR
Revenue	668.2	240.5
Net losses after taxes	(27.2)	(37.6)

Passenger traffic 2012 (estimate in million passengers)

	AEGEAN	OLYMPIC AIR
Domestic	2.6	2.3
International	3.4	0.6
Total	6.0	2.9

Top Copyright Photo: Wingnut. Airbus A321-231 SX-DVO (msn 3462) is pictured on the ramp at London (Heathrow).

Aegean Airlines:

Olympic Air (3rd):

Bottom Copyright Photo: Ole Simon. Flybe’s Bombardier DHC-8-402 (Q400) G-JECV (msn 4148), operated for Olympic Air, arrives at Frankfurt.

Flybe drops to a $10 million pre-tax fiscal year loss, ending on March 31

Flybe (flybe.com) (Exeter) swung into the red with a pre-tax loss of $10 million for its fiscal year ending on March 31.

The company issued the following report: CLICK HERE

Flybe:

Flybe routes from Southampton:

Please click on the map to expand.

Bmibaby to shut down the Belfast base on June 11, the airline to be totally shut down in September if a buyer can’t be found

Bmibaby (East Midlands) is living on borrowed time. New owner IAG has announced the low-fare subsidiary will be shut down on September 10 if a new buyer cannot be found. Meanwhile IAG is cutting key bmibaby routes for the carrier. The first to go will be the Belfast base on June 11 along with route closures from East Midlands. Birmingham and East Midlands will be totally shut down on September 10.

Read the full story from The Independent: CLICK HERE

In other related news, Flybe (Exeter) is planning to takeover some of the closing bmibay routes and is also in negotiations to possibly take over the aircraft and routes of bmi regional (Aberdeen). If completed, the Scottish division would operate under the growing Flybe brand.

Read the full story from the BBC: CLICK HERE

Top Copyright Photo: Nik French.

Bmibaby Slide Show: CLICK HERE

Bmi Regional Slide Show: CLICK HERE

Bottom Copyright Photo: Keith Burton.

Flybe redefines its product and brand

Flybe (Exeter) has announced a significant brand and product repositioning under the tagline “Making Flying Better” to help differentiate itself from the negative perceptions of low-fare travel.

According to the airline, “Making flying better” philosophy has three key objectives:

Increasing our flight frequency and connections to offer greater choice and flexibility.
Transparency pricing and booking processes to make it easier for our customers to understand.
To reduce the hassle of air travel through UK airports.

Flybe continues in their announcement, “a number of recent initiatives by Flybe that are very much part of the ‘Making flying better’ concept, are already proving a success with passengers, particularly the arrival of the new Embraer 175 jet aircraft that are now flying across the network; and the launch of Flybe’s innovative Manchester hub that offers extra regional connections for the UK traveller.

At the heart of “Making flying better” is a fair, open and transparent approach to sales and service policies. Included amongst many of the new product initiatives to be rolled out during 2012 are the following that have been introduced:

No charges for customers paying by debit card
Credit card customers being charged on a per booking basis regardless of the number of passengers in the booking
Creation of three new ticket types:
- 1. Essentials: this is Flybe’s lowest fare ticket that has no debit card charges, 10kg hand baggage allowance and seat selection at check in.
- 2. New Economy: A brand new ticket which, in addition to the free use of cards and 10kg hand bag allowance, also includes – in one upfront inclusive price – a free standard sized hold bag, free advance seat selection at the time of booking, a changeable ticket (which may incur a fare upgrade) plus a free SMS text message detailing the booking information. Prices for this ticket start at under £50.
- 3. Plus: Flybe has retained its top end product with a ticket that includes all the flexibility and comfort a short haul business traveller needs, including Executive Lounge access, a 40kg hold bag allowance and complimentary food and drink on board.
The airline has also launched a new website and new-look advertising creative, including a soon-to-be aired series of TV commercials all featuring Flybe’s own pilots and cabin crew.

Hot on the heels of this initial launch will see Flybe offering its customers smart phone enabled platforms and Apps that will allow booking and check in for travellers on the move.

The airline then plans for a Flybe first with summer trials of inflight TV programming and entertainment available free of charge for its passengers through onboard wi-fi. Additional product and service enhancements are due to follow throughout the year.”

Flybe Slide Show: CLICK HERE

Flybe starts operating for Brussels Airlines

Flybe (Exeter) today (March 25) started operating two Bombardier DHC-8-402s (Q400s) (G-ECOH and G-ECOI) for Brussels Airlines.

Hot New Photos Slide Show: CLICK HERE

Brussels Airlines Slide Show: CLICK HERE

Flybe will operate two Q400s for Brussels Airlines, adds routes and connections from Manchester

Flybe (Exeter) will wet lease two Bombardier DHC-8-402 (Q400s) for Brussels Airlines (Brussels) in their colors starting on March 25 for two years.

The company issued the following statement:

“Flybe has announced a deal to provide two Bombardier Q400 aircraft – with pilots, cabin crew and engineering support – to Brussels Airlines at the end of this month.

The agreement, announced to the London Stock Exchange, is identical in design and implementation to its successful partnership with Greek airline, Olympic Air in 2009-10 and is the latest in a line of innovative utilization of its fleet, highlighting Flybe’s ability to not only ride out the challenging economic environment but placing it in a position where it will emerge stronger and more competitive when the upturn arrives.

The wet lease arrangement runs from the beginning of the 2012 IATA summer season (March 25) for a period of two years, at which point the aircraft will return to Flybe’s scheduled services. Based initially in Birmingham and Hannover, the Bombardier Q400 aircraft will serve core routes for the Belgian airline throughout Europe. The aircraft will carry the livery of Brussels Airlines but will operate under the Flybe Airline Operating Certificate (AOC), be crewed by Flybe pilots and cabin crew and maintained by Flybe engineers.”

Flybe Slide Show: CLICK HERE

In other news, Flybe is adding flights, routes and connections at its Manchester hub.

Routes from Manchester: