Flybe cuts 116 jobs in Exeter

116 jobs will be lost from Flybe’s Exeter headquarters the largest portion of the 500 redundancies announced earlier this week.

The redundancies were announced on Monday as part of the companies’ drive to find £85million in savings.

Chief executive Saad Hammad said: "I know that these proposals are creating great personal uncertainty, but they are necessary to secure a long-term future for Flybe and I am grateful to the various union and staff representatives for the very constructive manner in which we have been able to commence the consultation process."

Hammad became Chief Executive in August taking over the postion from Jim French. French maintained his postion as Chairman before handing the role to Simon Laffin.

The airline will close its bases at Aberdeen, Guernsey, Inverness, Isle of Man, Jersey and Newcastle.  All other bases except Manchester will see a reduction in pilot numbers. 179 pilots will be made redundant as a result of the move.

Knock-on effects on routes are not yet known.

General Secretary of the British Airline Pilots’ Association, Jim McAuslan, has said, “Flybe needs to get back on the right track, but it is extremely disappointing that redundancies will be needed to do that.

“We will be working with the company day-in, day-out to keep compulsory redundancies to an absolute minimum and to help pilots who have loyally served the company and its passengers find new jobs.

“Pilots and their families will be suffering as they await further news. But so will the communities and islands served by Flybe who – apart from losing high-quality jobs from the area – will be wanting assurances that their connectivity will continue.

“Flybe plays an important part in connecting the countries, regions and islands of the UK and it would harm the local economy of those areas if connections are lost.  That is why the Government should assist Flybe by reducing Air Passenger Duty (APD).”

The job cuts announced on Monday saw Flybe’s share price shot up by over 40%.

Shortly afterwards it was announced that the majority shareholder Rosedale Aviation Holdings Ltd sold off its 48.1% stake in the company for over £25m.

The move marked the end of a long standing relationship between the airline and the Walker family.

Late steel magnate and former owner of Blackburn Rovers Jack Walker bought the majority share of Jersey European airways in 1983, which was rebranded as Flybe in 2002.

The sale saw other shareholders increase their stakes in the business as a result.

CEO Saad Hammad issued a statement after the sale, he said: “This transaction marks another milestone in Flybe’s history. I would like to thank Rosedale Aviation for their support over many years. 

“I would also like to take this opportunity to welcome aboard our new shareholders and thank existing investors who have increased their holding as part of this transaction.

“As I reported in our half year results on Monday 11 November, the economic environment remains challenging and all airlines face risks and uncertainties. I believe, however, that the turnaround of Flybe is gaining momentum.”