Excrab:
I was mindful of the periodic stricture not just to cut and paste long media articles on PPRUNE; any "selectivity" was down to trying to answer the earlier question. I have no axe to grind for flyBE; I think (as I said) that they've done a lot right and I hope they live long and prosper. I hope the 2005 full year shows a "real" operating profit. But it seems to me that the "£14m profit" headline (referring to FY2003/4) is over-egged, and indeed the 2003/4 operating result
before exceptionals is going in the wrong direction (if I understand it right, and please correct me if I'm wrong). But anyway, to make you happy
, here's the whole FT article.
FlyBE on course for operating surplus this year
Kevin Done, Aerospace Correspondent
Published: November 18 2004 02:00 | Last updated: November 18 2004 02:00
FlyBE, the UK regional low-fares airline, more than doubled operating losses in the year ended March 31 but was able to report pre-tax profit thanks to a £17m windfall secured through the joint sale with Air France of take-off and landing slots at Heathrow airport.
The airline is expected to report today that it is on course to make an operating profit in the current year for the first time in five years.
It is seeking to build a record of sustainable profitability following a change of business model to support a possible initial public offering or trade sale within the next two years.
The turnround this year has resulted from a far-reaching restructuring of the group and a transformation of its route network to compete with the low-cost airlines out of the UK regions. FlyBE, formerly known as British European, is the trading name of Walker Aviation. It is privately owned by Jersey-incorporated Rosedale (JW) Investments, one of the Walker family trusts.
It was originally established by Jack Walker, the former steel stockholding millionaire and owner of Blackburn Rovers.
According to its latest annual report, published yesterday, FlyBE's operating loss increased from £4.2m to £9.8m on turnover up 5.7 per cent from £231m to £244m.
However, with the exceptional landing slots credits, the group still achieved a pre-tax profit of £2.9m, up from £302,000 a year earlier.
According to the annual report, the airline increased its passenger volumes last year by 28.3 per cent to 3.6m helped by the development of a new base at Southampton airport and expansion at Exeter airport.
The group has been investing heavily to establish the FlyBE name - launched two years ago - as a national brand, and media and advertising costs jumped by 35.7 per cent last year to £10.4m.
FlyBE said that it had enjoyed a "strong" 2004 summer season that would support a return to an operating profit in the current year, although the group warned that the rise in the price of fuel "will cost us dearly in the future".