Flybe-9
Join Date: Oct 2003
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I’m not sure Hammad’s tenure was anymore glorious in all honesty. Yes he took over in 2013 and recorded a profit in 2014 of £8.1m but in 2015 Flybe had sunk to a £35.6m loss only to record a tiny £2.7m profit in 2016. Hammad then left at the end of October 2016 with C.O.W joining in January 2017. The loss for 2017 was recorded as £19.9m but was subsequently restated in 2018 to a whopping £48.5m via an impairment.
Don’t get me wrong, I didn’t and do not rate either of them as CEO’s but I’m not sure you can blame C.O.W for this restated loss when she only joined Flybe 2mths before year end. That said, both of these CEO’s reported to the same Chairman who should surely also share the responsibility for the performance and who should never have sanctioned a crazy battle with Loganair. Worrying more about your competition than your customer will always end badly.
Don’t get me wrong, I didn’t and do not rate either of them as CEO’s but I’m not sure you can blame C.O.W for this restated loss when she only joined Flybe 2mths before year end. That said, both of these CEO’s reported to the same Chairman who should surely also share the responsibility for the performance and who should never have sanctioned a crazy battle with Loganair. Worrying more about your competition than your customer will always end badly.
Join Date: Feb 2017
Location: aberdeen
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Absolutely:
As you said crazy battle with Loganair - Idiots.
Risk and reward agreement with Eastern that apparently cost them millions - incompetents
Hopelessly misguided cabin baggage policy that saw their reputation sink further - morons.
Flights from where i am (Aberdeen) to London for less than £30 - expletive.
As you said crazy battle with Loganair - Idiots.
Risk and reward agreement with Eastern that apparently cost them millions - incompetents
Hopelessly misguided cabin baggage policy that saw their reputation sink further - morons.
Flights from where i am (Aberdeen) to London for less than £30 - expletive.
Join Date: May 2017
Location: Belfast
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I have to agree as well you just about nailed it with your comments. From working for a GHA I would say the cabin baggage fiasco was the final straw for them. They seemed to be trying to be everything to everybody.
Join Date: Dec 2004
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Complete loss of focus; worrying more (to the point of obsessive idiocy) about a cabin bag being 1cm too long but obliviously ignoring the fact that the flight is running 2 hrs late and the next one is cancelled. It's called 'priorities'.
Join Date: Feb 2018
Location: Wales
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The strict cabin baggage was about trying to generate cashflow because the credit card companies were keeping their income. I saw an article saying that they were owed £70 million by them. How is a business supposed to survive when its not receiving it's sales but it's still expected to provide the product purchased by the customer?
Perhaps sort out why the CC companies are holding back as a priority? Doubt it was done for no reason. And wouldn't most people who had to pay the extra baggage chargedo it on a credit card?
Clearly the issue with the cabin baggage was that a policy was introduced but then not enforced, and then the approach was changed without being explained properly - sloppy.
Clearly the issue with the cabin baggage was that a policy was introduced but then not enforced, and then the approach was changed without being explained properly - sloppy.
Perhaps sort out why the CC companies are holding back as a priority? Doubt it was done for no reason. And wouldn't most people who had to pay the extra baggage chargedo it on a credit card?
Clearly the issue with the cabin baggage was that a policy was introduced but then not enforced, and then the approach was changed without being explained properly - sloppy.
Clearly the issue with the cabin baggage was that a policy was introduced but then not enforced, and then the approach was changed without being explained properly - sloppy.
I believe under "normal" circumstances the credit card companies will release a % to airlines before the journey but have the ability to hold back if they have doubts about the financial performance of the airline.
Countless UK airlines have called the administrators because the credit card companies cut their cash off when the airlines "wobbled".
Join Date: Oct 2003
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The situation was likely made worse by the banning of credit card charge fees. When the price incentive to pay by debit card was removed, this would also have affected cash flow driving this into the hands of the card acquirers rather than directly into the business. This wasn't the cause of Flybe's demise but just another nail being added...
With the obligations on credit card companies to refund customers who don't receive their product/flight in the event that the business fails, understandably the credit card debt acquirers want to protect themselves. For those businesses in a financially strong position that present less risk, cash is released early to provide the business with working capital, but for those struggling it was just another problem to try and overcome. When Flybe entered Administration, I think the card acquirers had about £50m held back starving Flybe of working capital.
The downside is that Flybe is no more, however the upside is that many customers will reclaim their money from their credit card companies and not be out of pocket as a result of Flybe ceasing operations.
With the obligations on credit card companies to refund customers who don't receive their product/flight in the event that the business fails, understandably the credit card debt acquirers want to protect themselves. For those businesses in a financially strong position that present less risk, cash is released early to provide the business with working capital, but for those struggling it was just another problem to try and overcome. When Flybe entered Administration, I think the card acquirers had about £50m held back starving Flybe of working capital.
The downside is that Flybe is no more, however the upside is that many customers will reclaim their money from their credit card companies and not be out of pocket as a result of Flybe ceasing operations.
The credit card companies were holding money back because Flybe wasn't making any money and they were concerned Flybe would go bankrupt.
Join Date: Oct 2003
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Do you think they weren't? I'm fairly sure it would have been all they were trying to do in the 12mths leading up to ceasing operations. I't's likely that the only way the credit card companies would have released cash would have been following a major cash injection into the business to stabilise it, however if this had been forthcoming they'd not have ceased operations.
Join Date: Nov 1999
Location: Edinburgh
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COW was dire but ultimate responsibility must surely lie with the Chairman who interviewed, chose, and appointed her. I have reason to believe that capable candidates weren't even invited for interview.
Join Date: Oct 2005
Location: Leeds, UK & Cork, Ireland
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What also drove me mad is why nobody thought to find a way to properly utilise the E195's, given they have enough distance to fly to Spain, Malta, Finland etc surely Flybe could have found a niche route(s) that made flying them profitable or at least break even, rather than flying them on Newquay to Gatwick where they hardly made any cash.
Join Date: Oct 2003
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I believe Saad left of his own accord
That said, he did manage to raise significant capital to keep the business going, and also got Flybe out of the remaining E175 order. I think he was more of a short-term turnaround specialist rather than a long term leader.
Last edited by JobsaGoodun; 15th Apr 2020 at 19:19.
Join Date: Dec 2011
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It is often forgotten that BE had pretty much no competition on most of their routes, and for all the bashing the q400 gets, it is probably the most economical regional plane out there. The only way this ends in bankruptcy is catastrophic bad management.
Join Date: Dec 2011
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When Saad left, it was with immediate effect with Flybe having to continue paying him his huge salary for at least 12mths after his departure. I certainly don’t think that he left by choice.
That said, he did manage to raise significant capital to keep the business going, and also got Flybe out of the remaining E175 order. I think he was more of a short-term turnaround specialist rather than a long term leader.
That said, he did manage to raise significant capital to keep the business going, and also got Flybe out of the remaining E175 order. I think he was more of a short-term turnaround specialist rather than a long term leader.
Join Date: Oct 2003
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Or alternatively ..gardening leave is what you dish out when during said CEO’s tenure, the business records profits of £10m but losses of £55m, (later restated to upwards of £80m.)
Saad made some major accomplishments, but having been with the business throughout his time, the culture was not good. Sadly, although this subsequently improved, it still didn’t generate any improvement to the bottom line.
Saad made some major accomplishments, but having been with the business throughout his time, the culture was not good. Sadly, although this subsequently improved, it still didn’t generate any improvement to the bottom line.
Join Date: Feb 2017
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Another clueless plan by the COO. £1k day off payments and a bonus scheme if you stayed working for flybe. Yes, normally could work but working for a regional, you generally have your personal life built around the area. So he gave money to people who probably not interested in leaving anyway. P*ssed away money the company didn't have. As an idea, they should have tried a revolutionary idea called leadership and management. And these village idiots were running the company.