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Case Study

Succeeding in a difficult market

Mike Pickerden looks at how Flybe manages to stay afloat in the fiercely competitive budget airlines market

Exeter-based Flybe is the UK’s largest domestic airline and Europe’s largest regional airline. It operates over 200 routes, specialising in short-haul flights of 1 hour or less, and currently employs around 2,900 people. The airline flies to and from smaller, regional airports, such as Southampton, Norwich and Leeds Bradford. Although it currently focuses on flights within the UK, it also flies to over 80 destinations in continental Europe, including daily services on business routes such as Frankfurt and Geneva.

Flybe made annual pre-tax profits of £5.7 million in the year to March 2010, based on sales turnover of £570.5 million. According to the company chairman, Jim French, it was one of only three major European airlines that managed to remain profitable throughout the recent recession. The total number of passengers travelling with the airline during the 12-month period was 7.2 million. Business customers account for 43% of those travelling with the airline, with those visiting friends and family making up 28% and leisure customers representing a further 24%.

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