NEWS — BIG INTERVIEW
We’re carrying record numbers of passengers and delivering record load factors
us to fly from local airports and to operate low-volume routes that low-cost operators and larger airlines cannot serve profitably. On 80% of our routes this summer Flybe did not compete against another airline but against rail and road. If Flybe didn’t exist, it would be necessary to invent it. We have a unique purpose providing regional customers with a service that is a necessity rather than a luxury. Our shareholders supported a
significant capital raise in March, confirming investors feel confident in the business and in the plans to take it forward. We’re in the early stages of our journey. We ended last year only marginally above break-even, but the momentum is encouraging.
Q What lessons did you bring from easyJet [Hammad was chief commercial officer at easyJet 2005-09]? A One was the importance of structure and process and an analytical foundation for decision-making. I launched a war on ‘voodoo management’, where decision-making is based on bias, personal preference and supposition. Another was the need to control costs. If you control costs, you can control your destiny.
Q You’ve said there was ‘an absence of a cost culture’. What impact might passengers notice? A The only impact customers should see is lower prices. Prior to restructuring we had priced ourselves well above the sweet spot for most of our customers in
the regions. Our costs were too high and the business lacked a cost focus. We not only launched a cost-reduction programme, but adopted rigorous controls over spending decisions. We’ve made sure our prices are attractive. It’s as simple as that. Our new London City prices start at £31.99. We’re offering an alternative to people used to taking the train – or bus – so we have to ensure we are quicker, more convenient and an easier way to travel. We also have to offer a competitive price point. We offer a 60/60 guarantee – if a flight is more than 60 minutes late due to an airline delay, you get a £60 credit to use in 60 days.
Q Are the job losses at an end? A Losing hardworking and loyal staff has been the hardest part. Sadly, we had no alternative. But times are changing and, while there is still a lot to do, the future is looking bright. In the past few months we’ve recruited 150 staff.
Q You’ve changed a fleet order, switching to turboprops instead of Embraer jets. Why? A We needed to resolve our fleet issues to implement our strategy. We reached an agreement with Republic Airways and Embraer to terminate an order for 20 Embraer jets. Instead we’ll sublease 24 attractively-priced Bombardier Q400s from March 2015. This agreement is pivotal as it allows us to fly the right aircraft, on the right routes. Our partnership with Embraer remains important – our fleet includes 11 E175s.
Q The most visible change is the rebrand. Why did you switch to purple? A In the spring we reinvigorated the brand with a vibrant new look and enhanced our product offering. Purple is the core brand colour as we feel it reflects our determination to be modern, dynamic and fun. It’s our way of saying we’re going to deliver an experience that is comfortable, efficient, distinctive and enjoyable. Our crews have modern, smart uniforms and our aircraft are being repainted purple. It is not just a colour – it signifies a new way of doing business: professional, passionate, positive, people-focused and playful.
Q What’s the thinking behind the FlybeShuttle? A FlybeShuttle is a hop-on hop-off, multi-stop service, akin to a bus service in the sky but faster and attractively priced. The key is to enhance the number of routes, connections and frequencies to poorly served regions. The first shuttle [launched this week] links Aberdeen, Leeds, Southampton and Jersey. Let me stress that each touchdown is very brief.
Q How important is the launch from London City? A Very important. London City is a major expansion for Flybe that will significantly boost connectivity. Six aircraft will be deployed and we’re expecting 500,000 passengers a year to travel on the routes. It’s important to customers who are struggling to make commuting
into London work, and important to residents of London, Exeter, Aberdeen, Inverness, Edinburgh, Glasgow and Dublin. These are routes that many people travel daily or weekly. You can fly from Exeter to London City in 70 minutes from £34.99. Compare that to a train journey of up to three and a half hours in crowded conditions. We take people to the heart of the financial district, not to a station far from it or to an airport in West Sussex, Hounslow or Bedfordshire. Support from the business community has been very encouraging. The services will be significantly faster than travelling via Heathrow, Gatwick or Luton, or by road or rail. This is a major step in meeting Flybe’s strategic objective.
Q Can a regional carrier survive alongside easyJet, Ryanair and British Airways? A Our offer is completely different – our focus is on connecting the regions. We’re competitively priced, have the right frequencies and right aircraft. The low-cost operators and BA typically don’t have the equipment or business model to serve regional routes profitably.
Q How do you see Flybe now? A It’s changing the way people think about commuting and travelling between the regions and that’s where we want to be. It’s a reborn company. Refreshed. Excited. Positive. ❯ Hammad is speaker at Travel Weekly Executive Dinner, page 18
30 October 2014 —
travelweekly.co.uk • 17
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76