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| Outspoken Flybe chief executive stands down after 12 years | Outspoken Flybe chief executive stands down after 12 years |
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| Flybe chief executive, Jim French, is to stand down after 12 years in charge, the struggling regional airline has announced. | Flybe chief executive, Jim French, is to stand down after 12 years in charge, the struggling regional airline has announced. |
| Saad Hammad, a former director of Air Berlin and easyJet, will take over from 1 August, with French moving upstairs to the role of non-executive chairman. French is chief executive and chairman of Flybe, an arrangement that contravenes corporate governance and became a growing source of disquiet as Flybe struggled in the wake of its 2010 flotation. | Saad Hammad, a former director of Air Berlin and easyJet, will take over from 1 August, with French moving upstairs to the role of non-executive chairman. French is chief executive and chairman of Flybe, an arrangement that contravenes corporate governance and became a growing source of disquiet as Flybe struggled in the wake of its 2010 flotation. |
| Floated at 295p per share, Flybe stock now trades at less than 50p. The airline has been buffeted by a combination of the economic downturn – most acute in the regions where its main routes are located – and UK aviation taxes, which have hammered Flybe as the UK's largest domestic carrier. | Floated at 295p per share, Flybe stock now trades at less than 50p. The airline has been buffeted by a combination of the economic downturn – most acute in the regions where its main routes are located – and UK aviation taxes, which have hammered Flybe as the UK's largest domestic carrier. |
| French said: "Saad [Hammad] brings with him a wealth of industry experience as well as a track record of leadership and board positions across a range of public and private businesses and we are very much looking forward to working with him." Hammad will inherit a turnaround plan that aims to cut £50m annually in costs and will result in 500 redundancies. | French said: "Saad [Hammad] brings with him a wealth of industry experience as well as a track record of leadership and board positions across a range of public and private businesses and we are very much looking forward to working with him." Hammad will inherit a turnaround plan that aims to cut £50m annually in costs and will result in 500 redundancies. |
| Hammad, who is currently managing director at private equity firm the Gores Group and spent four years as chief commercial officer of easyJet from 2005, added: "Flybe is making excellent progress on its turnaround plan. The business is once again 'fit to compete' and, with further opportunities to drive its competitive advantages, I look forward to leading Flybe into a new and exciting era." | Hammad, who is currently managing director at private equity firm the Gores Group and spent four years as chief commercial officer of easyJet from 2005, added: "Flybe is making excellent progress on its turnaround plan. The business is once again 'fit to compete' and, with further opportunities to drive its competitive advantages, I look forward to leading Flybe into a new and exciting era." |
| Analyst Gerald Khoo of Espirito Santo said: "Hammad's previous experience of turnaround situations and his track record at easyJet should prove especially useful in his new role. Although Flybe's cost restructuring programme is well defined and making good progress, we sense that the next stage of its recovery will have a greater focus on revenue enhancement." | Analyst Gerald Khoo of Espirito Santo said: "Hammad's previous experience of turnaround situations and his track record at easyJet should prove especially useful in his new role. Although Flybe's cost restructuring programme is well defined and making good progress, we sense that the next stage of its recovery will have a greater focus on revenue enhancement." |
| The airline's pre-tax loss worsened to £40.7m in 2012-13 results, while passenger numbers continued a slight decline to 7.2 million. In outspoken comments after last month's results, French said his airline had been forced into mass layoffs by "the totally unacceptable burden" of air passenger duty. | The airline's pre-tax loss worsened to £40.7m in 2012-13 results, while passenger numbers continued a slight decline to 7.2 million. In outspoken comments after last month's results, French said his airline had been forced into mass layoffs by "the totally unacceptable burden" of air passenger duty. |
| Flybe's shares rose 2.15% to 47.5p on the news of Hammad's appointment. | Flybe's shares rose 2.15% to 47.5p on the news of Hammad's appointment. |
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