After several years of 25-percent compound growth, UK regional British European Airlines is adopting a more measured approach to provide less unpredictable development after posting losses last year. Moves in late June to meet shareholders’ revised aims included the voluntary departure of chief executive Barry Perrott and the decision to release the Canadair RJ fleet. The airline lost money in the 12 months ending March 31 this year, after reduced profits in the preceding year, and had a “difficult” first quarter, according to former COO Jim French, who has recently assumed the post of managing director.
French told AIN that the airline, whose services include franchise, code-share and wet-lease operations for Air France, must match capacity to traffic and work to attract yield rather than volume. Within days of his appointment, French told employees: “The main goal is to return the business to profitability. We have become too complex, which causes inefficiencies and a lack of flexibility. This has significantly disrupted our aircrew and maintenance technicians.” The carrier “must simplify wherever possible, understand our objectives and revise plans to achieve those goals.”
