www.flybe.com

Flybe in talks with European airlines over running regional routes

By Reuters
13:02 27 Oct 2014, updated 13:02 27 Oct 2014

By Sarah Young

LONDON, Oct 27 (Reuters) - British regional airline Flybe is in talks with a number of European carriers about contracts to operate their regional flights, the company's chief executive said on Monday.

Saad Hammad said Flybe was looking to expand the "white label" part of its business, where larger airlines outsource some domestic flights to Flybe so that they can focus on their long-haul routes.

"Yes I am indeed (in talks) with a number of flag carriers," Hammad said at a press conference at London City airport, where the airline opened six new routes.

Hammad, a former easyJet executive who took the reins at Flybe in August 2013, has led a turnaround of the airline after it ran into trouble during the recession.

He said Flybe was now on track to grow, having over the last 18 months sold its landing slots at London's Gatwick airport, reduced its workforce and cut costs.

"This winter season you'll see us return to growth," he said.

Shares in Flybe were trading up 5 percent to 116.125 pence at 1240 GMT.

Flybe already provides white label regional services in Finland to Finnair.

When asked whether he expected Flybe to win further such contracts, Hammad said: "Watch this space", adding he'd be disappointed not to win a new contract in the next two years.

He said Flybe operated smaller aeroplanes which made it better placed to operate lower volume domestic routes than bigger airlines.

Full-cost airlines such as Lufthansa and Air France are under pressure to lower their cost bases to better compete against budget rivals such as Ryanair and easyJet, which have been stealing market share on short-haul European routes.

Hammad said outsourcing some domestic and regional routes would make sense for some bigger airlines.

"The big flag carriers will continue to be under enormous pressure to focus on what they excel at, their distinctive competence - the big routes, the thick routes, typically the long-haul routes," he explained.

Flybe said in its 2014 annual report that its white label contract with Finnair had been "a success" financially, reporting a pretax profit of 6.3 million pounds ($10.2 million) in 2013/14.

(1 US dollar = 0.6205 British pound) (Editing by Paul Sandle and Mark Potter)

Saad Hammad's interview on the Ian King show, Sky News this evening:

http://news.sky.com/video/1361489/air-strikes-back-against-hs2-and-hs3

The Guardian, Monday 27 October 2014 17.19 GMT
Alex Salmond welcomes Flybe flights between London City and Scotland.

New Flybe services will bring competition to ‘avoid BA charging through the nose’ and help travellers avoid Heathrow.

Alex Salmond has welcomed Flybe’s launch of new services from Scotland to London City airport, saying they would liberate business travellers from Heathrow and reduce British Airways overcharging.

Flybe launched operations from London City on Monday with six routes connecting the UK and Ireland to the capital’s financial district. Scotland is a key beneficiary with multiple daily services to Edinburgh, Aberdeen and Inverness.

Salmond, who arrived on the new flight from Aberdeen, said extra connections to the heart of London would be a great boost. “This sort of convenience is crucial. You have to have the competition to avoid British Airways charging everyone through the nose. And we’re not caught in the maw of Heathrow.”

His comments come only months after Willie Walsh, boss of BA’s parent company IAG, backed Salmond’s campaign for Scottish independence, which raised the prospect of lower aviation taxes. Salmond reiterated his pledge to scrap air passenger duty in Scotland if sufficient powers over taxation are devolved, saying that the move would help increase tourist spending.

Salmond said that despite Virgin’s decision to close down domestic airline Little Red, flights were viable. “Little Red was a feeder for Virgin. If you have a flight which is specifically designed for a business customer, that is connectivity. I could have been swimming in the Thames before 9 this morning.”

Flybe’s other City routes are to its base in Exeter, to Dublin, and to Belfast. Danny Kennedy, the regional development minister for Northern Ireland, said the air connections with London and regions were essential for Belfast. “Flybe gives us that opportunity in a unique way. It’s economic lifeblood.”

The carrier is returning to the capital after retrenching its network to stem losses. It expects to fly over half a million passengers annually to and from City airport.

Saad Hammad, chief executive of Flybe, said the sight of the rebranded purple aircraft at City was testament to a year of recovery and turnaround at the airline, which has struggled for survival. He said there was now a “much more rigorous approach to growth; no more seat of the pants, voodoo management. Historically, sadly, we never had a cost-control culture, they were out of whack.”

Flybe has signed a five-year deal at City. The airport’s chief executive, Declan Collier, said that while the airport was not a long term answer to problems of capacity in the south-east of England, “In the short to medium term, we believe we can relieve pressure by taking short haul flights. We can provide real regional connectivity in the UK.”

DB4.

You are working hard to flog this one!

It doesn't need me to flog it Fred. There were 3 significant RNS items yesterday, plus several other press comments. Investing in shares is a hobby to me, but I do try to work hard at it!

Have a look at the first trade this morning i was stopped out at 112.77 , what the fuck are they playing at bid 113 offer 117 UT trade

Aldwickk, check with your broker as you can't have been stopped out at 112.77. The prices at the opening and close on Moneyam live streaming are sometimes all over the place!
The bid price is now 117p and offer price 117.75p.

alders - If spread bet you are learning the hard way unless you put in wider stops especially trading small caps.

I phoned IG index , it was a crossover trade at auction ,have a look at the first 2 trades this morning bid price 113, my stop was 113 [ 112.77 ] these trades are before and after hours, am mad as hell about it

chris

the stop was at 2% [ 113 ] , what i could have done is near to the close put my stop at say 5%

i'm afraid this is always the problem with stops

alders - Far to tight, look at support 100p (ish) should it tank. Resistance 126p.

aldwickk - welcome to the world of spread betting!

Its easier to not have stops in overnight, as the SBers will take any opportunity to stop you - don't forget that they are your market. and so it is their quoted B/O that count - risky with a tight stop during the opening, closing and witching auctions.

Skinny

It was the same on the moneyam streaming trades, first quote of the morning 8.06 am

The auction uncrossed @113 - which I assume IG would have closed @112.71 on their bid.

1 116.05 417 O 113.25 116.75 08:00:17 417
0 113.0 61 UT 116.0 116.5 08:00:06 61




As I said above - I find it more practical to not have a close stop during opening/closing/option auctions - you have to remember that at the end of the day, the SB companies are really just glorified bookies.

Skinnny

What if a company issues very bad news with a 6.30 am RNS and you haven't a stop ?

Would it be best if i edited the stop just before the close say from 5% to 10%

The RNS would be @7am not 6.30 - and its like any trade - SB or other - its down to your personal risk appetite, but if it was a bad RNS there is no guarantee that your stop would work (unless it is a guaranteed stop).

If a share closed @100p and your stop was @90p, but an unexpected RNS caused it to spike to 80p on opening - that is where your SB is likely to be stopped!

IG as said they have now lowed their guaranteed stops charge

alders - This probably sounds crazy to you, before you place your next trade don't concentrate on how much you are going to make profit wise, decide how much you are prepared to lose. In other words if the trade went pear shaped just how far are you prepared to let it drop before you get out. Just below support does it for me.

So looking at Flyb chart 100p.

Target - 1st target 130p resistance

Entry - I don't know what price you entered the trade yesterday, let's say 115p

Risk/Reward - For me I don't like the above odds - Evens.

This sounds very simplistic I know but it is the bottom line.

Now if you think Flyb will break resistance and go higher great get back in as long as you are prepared to lose 15 pips.

This is the only way you can learn to spread bet, get to know the share your trading. Keep the mindset how much am I prepared to lose rather than how much am I going to win.