Flybe focuses on discpline in areas of capacity, revenue, costs and organisation

Flybe stated (23-Jul-2014) it has undertaken a disciplined approach across four focus areas: capacity, revenue, costs and organisation:

• Capacity discipline - the right aircraft on the right routes in the right numbers with improved utilisation;
• • UK operations: The carrier reported a 17.2% reduction in seat capacity to 2.5 million seats and a 9.2% improvement in aircraft utilisation with block hours per operating aircraft increased from 7.1 hours to 7.8 hours;
  • Finland JV: Reduction in the number of loss-making scheduled lines of flying as two (out of six) aircraft have been returned to lessors and in dialogue with JV partner Finnair to address performance;
• Revenue discipline - growing UK revenue per seat through higher load factors and robust route selection;
• • 9.5% growth in passenger revenue per seat to GBP52.79;
  • Load factor increase to 75.8%, up 9.3ppts driven by planned 3.9% reduction in passenger yield to GBP69.61;
  • The 11 new routes which were launched in Summer 2014 are performing in line with route assessment model expectations.
  • Flybe brand relaunched, including new purple livery, redesigned website, new advertising campaign, the world's-first 60:60 'on time guarantee' and improved on-board experience;
  • Introduction in Jun-2014 of Paypal as a payment alternative on Flybe.com;
• Cost discipline - driving efficiency by reducing costs;
• • 16.6% reduction in total group costs (excluding grounded aircraft and USD loan revaluation gains);
  • 1.6% reduction in UK costs per seat (excluding marketing and grounded aircraft) to £51.20;
  • GBP24 million planned cost savings on track in 2014/15, taking cumulative annualised savings in the turnaround plan to GBP71 million;
  • Strategic services agreement signed with Bombardier to make Flybe's UK branded Q400 fleet one of the most operationally efficient regional fleets in the world;
  • Lower aircraft ownership costs secured from the purchase of five second-hand Q400 turboprop aircraft from existing lessors for new London City operations;
  • Long term solutions for nine grounded E195s being actively pursued. Maximum exposure for 2014/15 now capped at GBP26 million as mitigation initiatives contribute to reducing ownership costs;
• Organisational discipline - driving efficiency by employee engagement and operational excellence;
• • New employee engagement programme, "The Purple Way", and new training programme, "Flybe Loves Service", being rolled out across the business;
  • MRO business unit to be retained, as a separate strategic business unit, following a detailed review and efficiency programme;
  • Confirmation of long term commitment to the Training Academy in Exeter. [more - original PR]