Thursday, 2 August 2018

Brexit: and Flybe's warnings

Devon businesses are feeling nervy:
Futures Forum: Brexit: and massaging Devon businesses' anxieties
Futures Forum: Brexit: and the economic impact as “somewhere between difficult and disastrous” for many hotels
Futures Forum: Brexit: and the South West to lose out the most

And one particular business is feeling particularly nervy: 

So ‘No Deal’ would be OK, would it? Exeter-based Flybe warns no agreement in place for flights to Europe after 29 March


From BBC Spotlight

Flybe, whose headquarters is in Exeter, is warning that no agreement is in place for services to mainland Europe after Brexit. With only eight months until Britain leaves the EU, airlines have no legal, commercial or political deals in place.

Flybe said it was already selling fares for next summer, with fingers crossed that common sense would prevail. But it warned there was no certainty.

Chief commercial officer Roy Kinnear said: “Customers are used to buying their flights in advance.” Chief commercial officer Roy Kinnear said he hoped common sense would prevail.

So ‘No Deal’ would be OK, would it? Exeter-based Flybe warns no agreement in place for flights to Europe after 29 March « SEATON & COLYTON matters

Flybe have been having problems for some time now - and fears over Brexit are just compounding them - as a piece from last month noted: 

Why can't Flybe make a profit?

There are a number of headwinds for the Exeter-based airline

Hannah Finch
14:47, 19 JUN 2018

If you've ever flown from Exeter airport, the chances are you've flown with Flybe. The city is proud to have its very own airline - it is one of the region's biggest companies, employing more than 2,000 staff.

This morning, figures for Year End 2017/18 revealed that Flybe has cut its pre-tax losses from £48million to £9million as revenue increased by six per cent. However, it posted adjusted loss before tax of £19.2m in the year to March 2018, up from £6.7m in the prior year. 

Chief Executive Christine Ourmières-Widener, who has been in post for just over a year, said operations have improved over the last year despite the loss increase. She has been transforming the business, cutting less-profitable routes and implemented an IT systems overhaul.

While losses have widened, Flybe's revenue has risen 8.3% to £732.0m. And it is making more from every seat - 10.1% higher at £53.79.

We look at the reasons why Flybe isn't making a profit:

1. Passengers are feeling the pinch

Just like the high street, Flybe is at the mercy of the consumer. It means things like the 'Beast from the East' puts people off flying or means flights are cancelled. And if consumers are losing jobs or feeling the pinch because of rising household bills, the first thing to drop off the budget is a trip abroad.

2. Brexit

The risks associated with Brexit and what regulation will look like for the aviation industry is a worry. Will there be additional tariffs and visas to think about. Air passenger duty continues to concern airlines - especially Flybe which has a lot of routes and partnerships with other airlines in mainland Europe.

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