Loading

Flybe: back in the black, but cost transformation is still needed

Analysis

After three years of widening full year losses, Flybe has reported a return to pre-tax profits in 1HFY2014. The Group's new CEO Saad Hammad joined in Aug-2013, when long-serving CEO and Chairman Jim French became non-executive Chairman. The break with the past was completed on 5-Nov-2013, when Mr French was replaced as Chairman by Simon Laffin, whose experience includes real estate, retail, media and financial services.

Mr Hammad, a former CCO at easyJet and non-executive director at Air Berlin plc, has immediately increased the targeted benefits under the Group's restructuring plan, recognising that its previous goals would not be enough. In terms of market presence, Flybe has a strong niche in UK regional markets and a small, but growing, foothold in contract flying in mainland Europe.

However, its cost base remains uncompetitive and Mr Hammad may need to drive out even more cost if he is to realise his aim to make Flybe "the best local airline in Europe".

Read More

This CAPA Analysis Report is 1,895 words.

You must log in to read the rest of this article.

Got an account? Log In

Create a CAPA Account

Get a taste of our expert analysis and research publications by signing up to CAPA Content Lite for free, or unlock full access with CAPA Membership.

InclusionsContent Lite UserCAPA Member
News
Non-Premium Analysis
Premium Analysis
Data Centre
Selected Research Publications

Want More Analysis Like This?

CAPA Membership provides access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find Out More