Embattled airline group Flybe has confirmed its turnaround plan is gathering pace and is likely to yield more than the £25 million in cost savings already projected in its January plan.
It follows a group restructuring as part of its ‘Delivery and Future Direction’ plan with a view to delivering the stated cost savings by March 2014.
There was further good news from the airline too, with the group said phase one ‘non-underlying’ restructuring costs for 2012/13 would be around £10 – £12 million with phase two being advanced to realise further revenue and cost benefits from 2013/2014.
Under the plans originally confirmed in January, the group targeted a 20% reduction in management headcount and 10% reduction in overheads and production headcount within the Flybe UK division.
Around 300 jobs were earmarked for redundancy within the business and certain support services outsourced to external firms.
In a today’s statement to the stock market, Jim French, chairman and CEO and Andrew Knuckey, chief financial officer of the group, said forward ticket sales showed revenue is currently up 2% over the same time last year, driven by growth in passenger numbers.
The company has already sold four of the aircraft within its fleet and has completed the first round of negotiations with trade unions and staff.