Flybe fleet review & business outlook
Recent media reports about Flybe point to that they stick to the Q400s and the E175s. Moreover Reuters there are statements by the CEO that increasing oil prices will be a challenge to the industry (not only specially for Flybe). I am afraid, I cannot post links because I an new here.
My view is: On the first point: At least there are consistencies in decisions made by the current and former management. So, it seems that they have a plan and recent improvements in traffic figures (PAX and load factors up) also point into this direction.
The second one is clearly not an official communication but I see it actually a bit more positive: Years ago when the fuel price dropped, it had an imminent impact on domestic routes which are in competition with car and train + plus those routes that are operated in competition with jets. The management then said, that low fuel prices put Flybe in an disadvantageous position compared to the other forms of transport. Although, the direct effect of high fuel prices should be bad for the business, the indirect effects can be positive (if other forms of transport become disproportionate more expensive). So, eventually, higher fuel prices lead to an improved competitive situation, possibly exceeding the negative direct effect. If we can ignore Brexit (can we? I still hope that it does not happen not only for the Brits but also for the rest of Europe), I am expecting a surprisingly positive development for Flybe over the next months.
Any views on this?