Regional airline Flybe said yesterday it was looking to grow the business again after a £150million fundraising bid, but it did not rule out more Scottish route cuts.
Flybe is trying to restore its fortunes after a plunge deeper into the red in the year to March 31, 2013.
A turnaround plan announced in November has already seen it withdraw aircraft and crew from Aberdeen, with Inverness facing the same fate by the end of next month.
It continues to fly from both cities, which between them have Flybe flights to a number of other UK airports and international destinations.
These include Amsterdam, Paris, Bergen and for the rest of the winter season, Geneva.
The airline’s Inverness-London Gatwick service is already doomed, with easyJet taking over the route next month.
Chief executive Saad Hammad refused to say yesterday where the axe may fall when Exeter-based Flybe carries out the rest of its previously announced plan to cull 30 unprofitable routes.
A total of 24 route withdrawals were identified, including three from Glasgow and one from Edinburgh, when the airline unveiled its summer 2014 schedule in December. Yesterday, Mr Hammad, chief executive since he took over the role from Jim French last August, said Flybe was committed to Scotland.
“We want to be the airline on your doorstep,” he added.
The former easyJet chief financial officer said the fundraising would give Flybe the “firepower” it needed to strengthen its balance sheet and return to profitability as soon as possible. The company’s pre-tax losses widened to £23.2million in 2012/13, from a deficit of £7.1million the year before.
Passenger numbers dipped by 1.1% to 7.3million as capacity was cut by 2.7%, while job cuts shaved 21% from the headcount and pilots pay was cut by up to 5%.
November’s turnaround plan involved a further 450 job losses, including 35 in Inverness and 12 in Aberdeen, with Flybe also announcing that operating bases in Newcastle and on the Isle of Man, Jersey and Guernsey were being axed. Mr Hammad told the Press and Journal yesterday the cuts would have no impact on flights to Scottish Highland and island airports operated under a franchise deal with Paisley-based Loganair. He also said Flybe was currently evaluating about 100 potential new routes across its network.
Asked if a Yes vote in the Scottish independence referendum would have any impact on business, he said the outcome was unlikely to change the travel habits of the airline’s Scottish customers.
Flybe is offering up to 141.5million shares at £1.10 in the fundraising.
It said that this would improve its financial position and operational flexibility.
It would also provide additional cash reserves.
The airline also plans to reduce costs by using some of the cash to buy aircraft, with the help of secured loans, rather than lease them.
It said it aimed to have new routes and bases up and running within a year.
Mr Hammad added: “We enter an exciting phase in the group’s development as we continue to build Europe’s best regional airline.”