Flybe changes operating structure to cut costs

Sept 16 (Reuters) - Europe's largest regional airline, Flybe Group Plc, said it would disband its UK and outsourcing divisions and integrate it into a single unit as part of a review started by Chief Executive Saad Hammad.

"It has quickly become clear to me that Flybe's prospects will be significantly enhanced by disbanding the existing divisional structure and integrating all operations into a single, simpler and lower cost operating unit," Hammad said in a statement. ()

As a result of this reorganisation, Andrew Strong, Managing Director of Flybe UK, Mike Rutter, Managing Director of Flybe Outsourcing Solutions and Mark Chown, Director of Corporate Strategy, stepped down on Sept. 13, the company said.

Faced with soaring fuel costs, falling passenger numbers and higher airport charges, Flybe has undergone a major restructuring - axing 590 jobs and pledging to quit its main London hub at Gatwick airport.

Flybe appointed Hammad, a former easyJet and Air Berlin (Xetra: AB1000 - news) executive as its CEO last month.