Flybe isn’t have a great time of it. Apart from selling its slots at Gatwick yesterday, it is now to defer delivery of Embraer E-175 aircraft.
The airline will defer delivery 16 aircraft – due for delivery in 2014-15 – to 2017-2019.
Delaying delivery will reduce pre-delivery payments by £20 million for the coming winter season.
With the sale of the slots and delaying new planes in its fleet, Flybe is hoping this will fund the turn-around the company requires without it going cap in hand to its shareholders.
Flybe has been cutting costs by reducing its staff, outsourcing maintenance and in some cases airport services were outsourced to 3rd parties, with 290 leaving through redundancy, 300 through transfers due to the outsourcing.
Other cost savings have come from supplier contracts and reducing airport charges to attempt to save £6million. Part of this is also with the BALPA union which could lead to a 5% wage reducing in exchange for more off duty time.
The savings all add up – for Flybe and its customers – survival is important as the airline operates some vital links that other airlines don’t run because the routes aren’t heavy enough. However, Flybe does face competition from EasyJet, Ryanair and other European airlines that could really put a dent in its services.
Lets hope Flybe has the time and money it needs to strengthen itself.