Flybe - back in the black!
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Flybe - back in the black!
FlyBE. announces increased profits of £3.1M for the financial year 2003/04 - (from Flybe website)
FlyBE., one of Europe’s largest low fares carrier today announced provisional profit figures for the financial year 2003/2004 of £3.1m. The Exeter based airline recorded its second straight year of profit growth as it benefited from its transformation into one of the UK’s most successful low fares airlines.
Commenting upon the results Jim French, MD of flyBE. stated:
“FlyBE. is a very successful UK business, delivering services in the UK, paying taxes in the UK and providing employment for 1500 people in the UK.
FlyBE. has a unique low fare airline business model deliberately designed to be very different to Ryanair and other low fare airlines.
80% of our routes are focussed in providing UK domestic services. We are the backbone of regional air transportation for the people of the UK. 10% of our routes are into very specific French regional markets where we have no head to head competition, and 10% of our routes are to Spain, where again we have no head to head competition”.
Commentating upon the trend of business for the 1st quarter of this financial year. Mr French stated that:
“ The 1st quarter of 2004/2005 has kicked off in strong fashion. Passenger numbers are up 43% and yields are up 12% over the same quarter last year, reflecting a change in route mix, as a result we will deliver a strong profit performance. Cash revenues are strong and healthy, we are in a better position than we have ever been”
Reflecting upon comments made by Mr O’Leary of Ryanair yesterday reference potential airline casualties in the coming months, Mr French stated:
“It is clear from his comments, that he does not understand our business model, does not understand our unique route structure, and therefore should refrain from commentating on things he clearly has no comprehension of.”
“ Mr O’Leary and his Irish based airline, has his own substantial problems. It is not unknown for companies with dominant market positions to seek to abuse that power, to resolve their own issues. The 4.5m passengers that will take a flyBE. flight this year, know we are a successful vibrant airline that has over 25 years of unbroken history in serving the UK regions and will not be swayed by the intemperate language emanating out of Dublin.”
“Mr O’Leary is quoted yesterday in saying “The times you test the mettle of a company is when its losing money.” We agree with Mr O’Leary as we were there in 2001, we have taken £40m out of our cost base, and as a consequence delivered two consecutive years of profit growth through the efforts of all of our 1500 dedicated staff. So if you want to know how to turn around your winter losses of £2.3m Mr O’Leary, give us a call. We stand ready and willing to help.
With all the negative talk in the industry from the low cost airlines, this can only be good news. Flybe has been through a torrid time of late and it's good to see it back in profit and providing and expanding services for the regions.
FlyBE., one of Europe’s largest low fares carrier today announced provisional profit figures for the financial year 2003/2004 of £3.1m. The Exeter based airline recorded its second straight year of profit growth as it benefited from its transformation into one of the UK’s most successful low fares airlines.
Commenting upon the results Jim French, MD of flyBE. stated:
“FlyBE. is a very successful UK business, delivering services in the UK, paying taxes in the UK and providing employment for 1500 people in the UK.
FlyBE. has a unique low fare airline business model deliberately designed to be very different to Ryanair and other low fare airlines.
80% of our routes are focussed in providing UK domestic services. We are the backbone of regional air transportation for the people of the UK. 10% of our routes are into very specific French regional markets where we have no head to head competition, and 10% of our routes are to Spain, where again we have no head to head competition”.
Commentating upon the trend of business for the 1st quarter of this financial year. Mr French stated that:
“ The 1st quarter of 2004/2005 has kicked off in strong fashion. Passenger numbers are up 43% and yields are up 12% over the same quarter last year, reflecting a change in route mix, as a result we will deliver a strong profit performance. Cash revenues are strong and healthy, we are in a better position than we have ever been”
Reflecting upon comments made by Mr O’Leary of Ryanair yesterday reference potential airline casualties in the coming months, Mr French stated:
“It is clear from his comments, that he does not understand our business model, does not understand our unique route structure, and therefore should refrain from commentating on things he clearly has no comprehension of.”
“ Mr O’Leary and his Irish based airline, has his own substantial problems. It is not unknown for companies with dominant market positions to seek to abuse that power, to resolve their own issues. The 4.5m passengers that will take a flyBE. flight this year, know we are a successful vibrant airline that has over 25 years of unbroken history in serving the UK regions and will not be swayed by the intemperate language emanating out of Dublin.”
“Mr O’Leary is quoted yesterday in saying “The times you test the mettle of a company is when its losing money.” We agree with Mr O’Leary as we were there in 2001, we have taken £40m out of our cost base, and as a consequence delivered two consecutive years of profit growth through the efforts of all of our 1500 dedicated staff. So if you want to know how to turn around your winter losses of £2.3m Mr O’Leary, give us a call. We stand ready and willing to help.
With all the negative talk in the industry from the low cost airlines, this can only be good news. Flybe has been through a torrid time of late and it's good to see it back in profit and providing and expanding services for the regions.
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"FlyBE. has a unique low fare airline business model deliberately designed to be very different to Ryanair and other low fare airlines."
Mmmm that would be why it is always cheaper for my inlaws to come from Belfast with an Easyjet & Aurigny flight via Gatwick than using FlyBE on same route!
It makes no difference that you have to change airlines as now you have to collect your bags and check in again with FlyBE anyway instead of booking straight through Belfast to Guernsey!
Mmmm that would be why it is always cheaper for my inlaws to come from Belfast with an Easyjet & Aurigny flight via Gatwick than using FlyBE on same route!
It makes no difference that you have to change airlines as now you have to collect your bags and check in again with FlyBE anyway instead of booking straight through Belfast to Guernsey!
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Mmm thats strange as I always see bags checked right the way through to Jersey and the like from Belfast City.Maybe its somehi9ng to do with the Guernsey route??
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Through check-in finished to ensure Fly-Be did not have to pick up the tab for missed connections or incurr delays. All routes single legs, miss your flight lose that ticketed leg is my understanding.
Profits increasing from all that unclaimed tax & charges when people miss their flights.
But still offer a good no frills service to lots of varied destinations not covered by the easy/ryan types.
Profits increasing from all that unclaimed tax & charges when people miss their flights.
But still offer a good no frills service to lots of varied destinations not covered by the easy/ryan types.
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Good news
But do these figures include the money recieved from the sale of slots at Heathrow. If memory serves me right that was reckoned to be worth a few mill.
But do these figures include the money recieved from the sale of slots at Heathrow. If memory serves me right that was reckoned to be worth a few mill.
Last edited by babydoc; 2nd Jun 2004 at 23:39.
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Think FlyBE were quite in the red after the summer season, and only the sale of LHR slots bought them back into the black...Still, guess it doesn't matter how you make the money - they've now got a profit, and as long as they don't mess anything up, that profit can only grow.
In accounting terms the sale of the Heathrow slots (which if I recall correctly they got about £15m for) would not normally appear in the trading figures, and thus does not count towards the profit of the company now being reported (sorry for doing the boring accounting bit).
The press release doesn't make it clear where this money is accounted for though, or indeed if it even came in during the financial year now being reported on. It does of course contribute to the cash, which probably got used to pay off the debts from past losses. Do I also recall correctly that Flybe had a big loan from the Walker Family Trust ?
The press release doesn't make it clear where this money is accounted for though, or indeed if it even came in during the financial year now being reported on. It does of course contribute to the cash, which probably got used to pay off the debts from past losses. Do I also recall correctly that Flybe had a big loan from the Walker Family Trust ?
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EGAC_Ramper afraid hapzim is right.
They stopped us being able to check right through from BHD to GCI a few months back to save money. Basically if you miss the connection between your two FlyBe flights, even if oe of them is running late to get you to the next one, in either direction you are stuffed you have to buy a new ticket for the next flight!
They stopped us being able to check right through from BHD to GCI a few months back to save money. Basically if you miss the connection between your two FlyBe flights, even if oe of them is running late to get you to the next one, in either direction you are stuffed you have to buy a new ticket for the next flight!
They stopped us being able to check right through from BHD to GCI a few months back to save money. Basically if you miss the connection between your two FlyBe flights, even if oe of them is running late to get you to the next one, in either direction you are stuffed you have to buy a new ticket for the next flight!
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Well it is nice to see Jim French trying to stick the boot into Michael O Leary. The image of plucky terrier and a slavering Rottweiler springs to mind though.
Maybe its a little premature to crow about a £3.5m profit. They did raise many times that from the sale of the family silver (heathrow slots to Quantas). They were in receipt of compensation from BAE for the cancelling of the RJX program. They sold the CRJs. They are still offering industry leading low wages and those 146s won't keep flying for ever.
Like most airlines - they face some problems. Engaging in press banter with Ryanair that most of the public won't understand is probably a waste of time by management.
Maybe its a little premature to crow about a £3.5m profit. They did raise many times that from the sale of the family silver (heathrow slots to Quantas). They were in receipt of compensation from BAE for the cancelling of the RJX program. They sold the CRJs. They are still offering industry leading low wages and those 146s won't keep flying for ever.
Like most airlines - they face some problems. Engaging in press banter with Ryanair that most of the public won't understand is probably a waste of time by management.
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The money raised from the sale of slots at LHR was in the region of £40m. Yes this was a significant sum however it was also roughly the same amount invested by the Walker Trust in order to simply keep the airline flying from 2001-2003. My understanding is that most of this money was used to repay the trust, however I do not dispute that the windfall from the sale of the LHR slots has significantly helped Flybe's 'bottom line'.
Compensation from the RJX was not as significant as you may expect, afterall Bae did stipulate that they would build the aircraft ordered by Flybe. At the time of the order cancellation the industry was on it's way down. It has been noted that the cancellation of the RJX programme was a blessing in disguise for Flybe as it meant money allocated to the fleet renewal could help shore up the airlines finances in wake of the downturn.
The sale of the CRJ's cost Flybe a small fortune! It certainly did not make the airline money. The associated crew training costs onto alternative types and the cost of ferrying the aircraft out to India cost Flybe an awful lot of money.
I accept that Flybe commanders do not recieve as high a jet wage as other airlines however the prop salary is amongst the best in the country as far as I am aware. The next plan is to replace the 146 but with what is anyone's guess. Initially it looks like the RJ100 may be likely with THY, Swiss and SN Brussells looking to get rid of theirs. 737/319 and EMB 190 are also on the cards.
Compensation from the RJX was not as significant as you may expect, afterall Bae did stipulate that they would build the aircraft ordered by Flybe. At the time of the order cancellation the industry was on it's way down. It has been noted that the cancellation of the RJX programme was a blessing in disguise for Flybe as it meant money allocated to the fleet renewal could help shore up the airlines finances in wake of the downturn.
The sale of the CRJ's cost Flybe a small fortune! It certainly did not make the airline money. The associated crew training costs onto alternative types and the cost of ferrying the aircraft out to India cost Flybe an awful lot of money.
I accept that Flybe commanders do not recieve as high a jet wage as other airlines however the prop salary is amongst the best in the country as far as I am aware. The next plan is to replace the 146 but with what is anyone's guess. Initially it looks like the RJ100 may be likely with THY, Swiss and SN Brussells looking to get rid of theirs. 737/319 and EMB 190 are also on the cards.
