Two items from the prospectus of relevance
Page 15: Risk relating to the business
"The Group is dependent on good industrial relations
Many of the Group’s employees are represented by trade unions and the Group has voluntary recognition agreements in place with BALPA in respect of its pilots, UNITE in respect of its cabin crew and Prospect in respect of its engineers. The Group undertakes collective bargaining with such unions on a financial yearly basis. While agreements have been reached with UNITE and Prospect in respect of the 2010/11 Financial Year, the Group is currently in discussion with BALPA (under the dispute resolution process agreed in Flybe’s voluntary recognition agreement with BALPA) in relation to the 2010/11 Financial Year pay settlement and certain scheduling issues. Any breakdown in the bargaining process with BALPA (or with UNITE or Prospect generally) could result in the Group being unable to continue to negotiate wages and salaries on terms that support it offering services at competitive prices, or could lead to strikes or other industrial action (or the threat of strikes or industrial action) which could damage the Group’s reputation or cause passengers to book with the Group’s competitors. A breakdown in the relationship with employee representative bodies, or the employees themselves, could lead to industrial action being taken which could in turn have a material adverse effect on the Group’s business, results of operations, growth prospects and/or financial condition."
Page 44. A "Key element" of strategy
"the group will continue to focus on cost reductions across all aspects of the Flybe business with the aim of delivering the lowest unit cost base amongst European regional airlines"
Enough said!
Best of luck in getting a fair result,