Flybe is still involved in talks which could lead to it going head-to-head with British Airways (BA) on flights from Aberdeen into London Heathrow.
Executive chairman Simon Laffin said yesterday the carrier was still “in discussions” over landing slots with bosses at Heathrow, but stressed the move depended on whether access to the UK’s busiest airport was economically viable.
“It’s an expensive place to go into,” he said, adding: “We are in talks but can’t announce anything at the moment about whether or not it may happen.”
Mr Laffin recently added chief executive duties to his existing responsibilities, with former CEO Saad Hammad now serving out his year-long notice on gardening leave by “mutual agreement”.
Announcing the end of a three-year “transformation” alongside first half results yesterday, Mr Laffin said Flybe finally had control over its aircraft capacity for the first time since its £215million stock market flotation at the end of 2010.
The turnaround plan tackled “legacy fleet issues”, allowing the airline to replace larger jet planes with smaller aircraft more suited to its route network.
It also included a capital fundraising, brand relaunch, management restructuring, and saw the airline exit a joint-venture in Finland and establish a “strong cost culture” to drive efficiency savings.
Mr Laffin said: “We can begin to move from being a supply-driven business to a demand-driven business. This will free us for even greater focus on implementation excellence and refining route profitability.
“As passenger numbers are still rising across the industry, we see further revenue opportunities.
“The aviation market is tough at the moment, with excess seat capacity in the European short-haul market coupled with a weaker pound and both business and consumer uncertainty impacting all airlines.
“However, Flybe has a robust balance sheet and cash position. From this strong position, over the next 12 months, we will open our first European base in Dusseldorf and continue to cautiously test routes to maximise the returns from our existing capacity.”
Adjusted pre-tax profits for the six months to September 30 came in at £15.9million, down from £21.1million a year ago, with “challenging external market conditions” hitting the balance sheet.
Revenue rose to £383million, from £339.6million previously, boosted by a 7.1% increase in UK passenger numbers to 4.8million.
Mr Laffin said Flybe’s flights from Aberdeen also carried more passengers during the latest period, despite the economic downturn locally.
Flybe’s chances of flying between the Granite City and Heathrow seemed to have evaporated earlier this year, when Mr Hammad announced the carrier had suspended plans to take up slots at the UK’s busiest airport in a row over charges.
He said a formal bid to muscle in on BA’s current monopoly on the route would be put on hold unless Heathrow bosses changed their “rigid charging regime”.
