Flybe - 8

[bycrewlgw]

Originally Posted by Buster the Bear

Basically the Welsh Government are subsidising travel which to me is absurd. Hopefully the business cost/benefit to Wales is greater than just making holidays cheaper for Welsh citizens?

I'm seriously not business minded so serious question (no sarcasm please) but isn't this what most airlines do? Ryanair for example will squeeze what they can out of airports and tourist boards etc to pay for marketing and I'm sure they don't pay the published airport fees. Are the Spanish regions for example not subsidising through marketing payments?

[davidjohnson6]

bycrew - some airports generally import tourists while other airports tend to export tourists.
Most people flying between Cardiff and Italy are going to be people who live in Wales but fancy a nice holiday in Italy. This means they are spending lots of money (hotel, restaurants, etc) in Rome and the Italian economy benefits. The Cardiff economy by comparison sees very little benefit in return.

Thus if the Welsh Assembly subsidises a Cardiff-Rome route, in effect they are giving a subsidy to encourage Cardiff residents to have a holiday abroad. Even worse, people who can afford a holiday abroad tend to be richer than those who holiday in the UK - thus some of the tax paid by the poor ends up subsidising just the rich - the very opposite of what a fair tax system should do.

If on the other hand, the Welsh Assembly gave zero subsidy but the Italian Govt gave a subsidy it would be absolutely fine. Italian tax money would be used in a way to boost the Italian economy

[bycrewlgw]

Originally Posted by davidjohnson6

bycrew - some airports generally import tourists while other airports tend to export tourists.
Most people flying between Cardiff and Italy are going to be people who live in Wales but fancy a nice holiday in Italy. This means they are spending lots of money (hotel, restaurants, etc) in Rome and the Italian economy benefits. The Cardiff economy by comparison sees very little benefit in return.

Thus if the Welsh Assembly subsidises a Cardiff-Rome route, in effect they are giving a subsidy to encourage Cardiff residents to have a holiday abroad. Even worse, people who can afford a holiday abroad tend to be richer than those who holiday in the UK - thus some of the tax paid by the poor ends up subsidising just the rich - the very opposite of what a fair tax system should do.

If on the other hand, the Welsh Assembly gave zero subsidy but the Italian Govt gave a subsidy it would be absolutely fine. Italian tax money would be used in a way to boost the Italian economy

Thanks for the explanation! Makes things much more clear!

[zoomboy]

I'm not too keen to get involved in these arguments because they easily become dogmatic and ideological, when neo-liberalism is looking a busted flush, but I think we must not assume opinions as facts. I think that there is evidence that inbound tourism into Cardiff Airport from Europe is doing quite well. There are quite strong Family links between Wales and Italy - yes they produce and sell the ice cream. And there are regular sporting links between the two nations. Overall, the deal is to base two E195s in Cardiff, and to be viable they will be a mixture of what works - business, inbound and outbound tourism. Flybe rightly will make the decisions.
If the wealthy Welsh are to holiday abroad, and they are, then it is clearly in the interests of the WG that they fly, contributing some income to Welsh coffers, than from an English airport.
It would be a great pity if the Dusseldorf link was totally lost, as this is mainly a tourist inbound service. Let's hope the Saturday service continues.

[SWBKCB]

As well as the arguments made by Zoomboy, based a/c also boost the local economy because of the employment generated to support them, and more importantly, making local businesses more accessible to the outside world - it won't just be tourists flying between CWL and Rome.

[caaardiff]

I think that there is evidence that inbound tourism into Cardiff Airport from Europe is doing quite well. There are quite strong Family links between Wales and Italy - yes they produce and sell the ice cream. And there are regular sporting links between the two nations. Overall, the deal is to base two E195s in Cardiff, and to be viable they will be a mixture of what works - business, inbound and outbound tourism. Flybe rightly will make the decisions.
If the wealthy Welsh are to holiday abroad, and they are, then it is clearly in the interests of the WG that they fly, contributing some income to Welsh coffers, than from an English airport.

This sums it up for me.
CWL is predominantly used to fly the Welsh on their holidays, there's no hiding that and CWL has always done well out of that. But as Zoomboy says, there is evidence of inbound tourism to Wales. It's been said that many Spanish people use the Vueling routes, so they aren't just there to fly the Welsh to Spain.
I think Flybe will certainly do the same. Not all of their routes are holiday routes taking people away. Routes to Italy and Germany will attract inbound tourism.
Lastly, regardless of who is flying where and why, the more passengers means more Airlines, needing more crew, need more check-in staff and loaders, cleaners, security agents etc etc. It also means those jobs don't go to BRS

[Reversethrustset]

um, no Kockayne all I see is Rivet Joint stating it as he sees it, which is opinion, not fact. How can it be fact when it hasn't happened yet? Come back in 8 years time and if Flybe have pulled out I'll agree with you and him that he's stating a fact, until then I see opinion. I guess it's a little like your age listed on the left there, that's actually not fact is it.

[nguba]

CEO Saad Hammad is "stepping down":

http://www.investegate.co.uk/flybe-g...0261034455072N

Flybe today announces that Saad Hammad has by mutual agreement stepped down from his role as Chief Executive Officer of Flybe with immediate effect. The Board recognises the substantial contribution Saad Hammad has made and both the board and Saad believe it is time for a new Chief Executive Officer to lead the next phase of Flybe's long-term development.

A search has commenced for a new Chief Executive Officer. Simon Laffin, Non-executive Chairman, has assumed the role of Executive Chairman until a new CEO is appointed.

Saad Hammad joined Flybe in August 2013 and has led the significant transformation of Flybe into the regional airline it is today - a focused regional airline with a strong balance sheet, robust operations and an excellent customer proposition.

[Whispering Giant]

Saad Hammad has left Flybe with immediate effect. Simon Laffin has taken over CEO duties whilst a search is made for a new CEO.

[Leg]

'Left' the company, however still being paid his half mil salary for the next year, for someone who has tanked the share price and pi$$ed off most of the employees, he has done well for himself

[ATNotts]

Originally Posted by Leg

'Left' the company, however still being paid his half mil salary for the next year, for someone who has tanked the share price and pi$$ed off most of the employees, he has done well for himself

....and seemingly turned around the company in the process!

64,000 dollar question is, where is he going to resurface. Monarch perhaps?

[Curious Pax]

Flybe today announces that Saad Hammad has by mutual agreement stepped down from his role as Chief Executive Officer of Flybe with immediate effect

In this context often code for 'you're fired'! Disagreements with the board on strategy?

[Cyrano]

Originally Posted by Curious Pax

In this context often code for 'you're fired'! Disagreements with the board on strategy?

At the time of writing, the Flybe share price is down 14% on this morning.

Given that the half-year results are due in about 2 weeks, one might guess that the market is worrying at least as much about what the CEO's departure implies about those results, as the fact of the departure itself...

[nguba]

If somebody "steps down" from a role, you can be confident there's more to it. Nobody leaves without another job to go to for no reason.

[compton3bravo]

Hope he does not resurface at Monarch heaven forbid, not particularly well liked I understand when he was with the orange brigade across the ramp at Luton. Plus what is 'an excellent customer proposition'? on the press release.

[harriewillem]

Some nice read here... 500K sterling almost as farewell fee...

FE Investegate |Flybe Group Plc Announcements | Flybe Group Plc: Directorate Change

Wednesday 26 October, 2016
Flybe Group Plc
Directorate Change
RNS Number : 5072N
Flybe Group PLC
26 October 2016

Flybe Group plc ("Flybe" or "the Company")

Directorate Change



Flybe today announces that Saad Hammad has by mutual agreement stepped down from his role as Chief Executive Officer of Flybe with immediate effect. The Board recognises the substantial contribution Saad Hammad has made and both the board and Saad believe it is time for a new Chief Executive Officer to lead the next phase of Flybe's long-term development.



A search has commenced for a new Chief Executive Officer. Simon Laffin, Non-executive Chairman, has assumed the role of Executive Chairman until a new CEO is appointed.

Saad Hammad joined Flybe in August 2013 and has led the significant transformation of Flybe into the regional airline it is today - a focused regional airline with a strong balance sheet, robust operations and an excellent customer proposition.



Flybe will announce its half-year results for the period to 30th September 2016 on 9th November 2016.



Simon Laffin, Executive Chairman, said;

"The Board would like to thank Saad for his energy and drive which has been a major contributor towards Flybe's transformation over the last three years. He mapped out a clear vision for the Group and led it to a significantly stronger position. We wish him well for his next challenge.



Whilst the whole aviation industry faces a challenging market environment, Flybe remains well placed. Our strategy remains to focus on regional routes and to provide an excellent service to our customers."



Saad Hammad said;

"I am very proud of what we have achieved over the last three years with a major turnaround in Flybe. Now is the right time for me to move on to a fresh challenge. I would like to thank all company employees for their hard work, passion and commitment and wish them all the best."

Certain information contained in this announcement would have constituted inside information (as defined by Article 7 of Regulation (EU) No 596/2014) prior to its release as part of this announcement.



Enquiries:

Flybe

Simon Laffin, Executive Chairman

Tel: [phone]



Maitland

Neil Bennett Andy Donald

Tel: [phone]



Notes: Key compensation arrangements for Saad Hammad



The following information is provided in accordance with section 430(2B) of the Companies Act 2006.



Mr Hammad is entitled to 12 months' notice from the Company under his service agreement and will therefore continue to receive his salary (£433,500) and other benefits until the 25th October 2017. He will be on garden leave until this date. During his notice period he will be available to ensure an orderly transition.



The Flybe Group plc Remuneration Committee (the Committee) has determined that the following terms will relate to Mr Hammad's departure, which are consistent with the Directors' remuneration policy, Mr Hammad's service agreement and his statutory employment rights:



1. Compensation

Mr Hammad will be paid £30,000 in compensation of lost benefits and in consideration of a waiver of his statutory employment rights.

2. Discretionary Annual Bonus

Mr Hammad's award under the Company's 2015/16 annual discretionary bonus scheme will vest in accordance with the terms of the Deferred Bonus Agreement dated 1st August 2016. No bonus payment will be made in respect of the Company's current financial year.

3. Performance Share Plan

Unvested awards under the Performance Share Plan will lapse in accordance with the rules of the plan.

4. Legal Fees

The Company will also make a contribution of £4,000 plus VAT towards Mr Hammad's legal fees in obtaining advice on the termination of his employment.


This information is provided by RNS
The company news service from the London Stock Exchange

END

[SWBKCB]

500K sterling almost as farewell fee...

Depends what the conditions are around 'gardening leave'

[davidjohnson6]

Sounds strongly like the CEO has been pushed out against his will. The mutual agreement thing sounds most unlikely.

[runway30]

Of course he decided that his garden would be more of a challenge.

[SWBKCB]

Plus what is 'an excellent customer proposition'? on the press release.

Hopefully a sacking offence for whoever wrote and approved it