Flybe to cut 300 jobs in bid to turn around UK business
(Reuters) - Flybe Group Plc, Europe's largest regional airline, said it would cut about 300 jobs, or about 10 percent of its UK workforce, as it tries to turn around the struggling business.
The job cuts would include a 20 percent reduction in management posts and about 10 percent of overhead and production roles, the British carrier said.
Flybe said it did not expect to close any of its 13 UK operational bases but was implementing cost reduction plans with suppliers such as airports and maintenance providers, rolling out fuel efficiency programmes and expanding automation at the check-in process.
European airlines are being hit by slower spending on air travel amid the euro zone debt crisis as well as by high fuel prices, and many have responded by shutting down unprofitable routes and limiting their spending.
Flybe estimated the current measures to result in restructuring costs of between 10 million pounds and 12 million pounds, with the majority of these to be recorded in the current fiscal year that ends on March 31.
It reiterated its forecast of year-on-year revenue growth of up to 2 percent.
Flybe's shares were down 6 percent to 47.25 pence in early trading on Wednesday morning on the London Stock Exchange. They have lost about 21 percent of their value over the last year. (Reporting by Brenton Cordeiro in Bangalore; Editing by Don Sebastian)
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