Flybe’s new business model

Flybe have been in the news quite a lot recently, as they announced a major restructuring, which involved closing down six of their airport stations and making 500 employees redundant.   This is an interesting airline from an operations perspective in that it is neither a ‘legacy’ carrier i.e. a major intentional scheduled airline, nor a low cost carrier.  It is a classic small scale ‘regional’ airline.

The restructuring it has announced is part of a turnaround strategy designed to reassure investors that the airline has a future.  This is fully explained in their own corporate presentation.  It explains how they are going to cut costs and return to profit in the both the short term and medium term.  A key feature of this new strategy is outsourcing… both in terms of aspects of their operations that they plan to outsource (such as their call centre, catering, and onboard retail sales), but also the outsourcing services that they provide to other airlines (such as Olympic and Finnair).

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