Airline chief ‘optimistic’ Brexit won’t have impact
THE boss of the largest airline to operate out of Cardiff Airport says it could be “difficult” for the airline if Brexit leads to a worse customer experience at airports.
Flybe chief executive Christine Ourmieres-Widener said she is more optimistic than some of her fellow airline bosses, who have warned that British exit from the European Open Skies agreement could force the scrapping of services.
Speaking on her first visit to Cardiff Airport since taking up her new post in January, she said: “For Flybe compared to other players the impact is a bit different because we don’t have a business model with intra-European routes using Europe as an open market. So it’s a very limited impact on our capacity to fly the routes we are flying today.
“For us the most important impact is about the customer experience. We think it would be difficult to see any change in the customer experience when you talk about customs and frontiers.
“Security is always on our agenda but at the same time if the customer experience is becoming more difficult it could have an impact on the willingness of our customers to fly.”
Ms Ourmieres-Widener said she did not believe the Government would do anything that is “negative” for the consumers.
She said: “Maybe we are optimistic and some of our colleagues are very pessimistic. We are trying to talk to different MPs to explain to them how important this experience is. I think most of the MPs we are talking to understand that we have to do everything we can to not see any difficulty for travellers in the future.”
Last month Flybe released a trading statement which referred to the pressures the airline was under from the weak pound and weak consumer demand. Ms Ourmieres-Widener admitted that Flybe was in a “challenging market”.
She said: “On most of the routes in the UK we are competing against the train, so our proposition is much stronger because we are faster than the train, [but] you need to be competitive on price so you need to keep your costs low to be able to offer a competitive price to the customer.
“On routes to Ireland or Europe it’s finding the right positioning and price for the customer.”
She added that Flybe is at an “inflection point” in its history and that the company had embarked on a complete review of its network.
“This study has been done, now the question is between the study and how we want to deploy that in the next two or three years, what do we do and which fleet.
“It’s not only the number of the destinations, it’s about the frequency, [the] best flights to optimise what we fly today. It’s not about big changes, it’s about really significant optimisation,” she said.
The former head of CityJet and vice-president of Air France said Flybe was working with Cardiff Airport on new opportunities.
“We are working with them on charter opportunities for the winter season. We need to go a little more into the details,” she added.
“Opportunities are studied everyday. It’s about having the right idea with the right profile to make a profitable business case.”
Cardiff Airport yesterday announced the appointment of two new directors. Mark Bailey has been appointed director of airport planning and development and Ceri Mashlan has been promoted to director of operations.
They will contribute to the development of the airport’s strategic business plan, the upcoming master plan and the delivery of the Uefa Champions League Final in June.
Deb Barber, CEO of Cardiff Airport, said: “Our strategy for growth is focused on welcoming new airlines, adding more choice for our customers and to explore and develop the potential that exists within the airport site in order to diversify our business. I’m confident that Mark and Ceri’s expertise will be pivotal in helping us achieve this.”
IF Flybe’s new chief executive Christine Ourmieres-Widener is worried about the impact of Brexit on the business she’s not showing it.
On the contrary, the former CityJet head professes to be more optimistic than some of fellow airline bosses, who have warned that British exit from the European Open Skies agreement could force the scrapping of services.
Speaking on her first visit to Cardiff Airport since taking up her new post in January, she said: “For Flybe compared to other players the impact is a bit different because we don’t have a business model with intra-European routes using Europe as an open market. So it’s a very limited impact on our capacity to fly the routes we are flying today.
“For us the most important impact is about the customer experience, we think it would be difficult to see any change in the customer experience when you talk about customs and frontiers.
“Security is always on our agenda but at the same time if the customer experience is becoming more difficult it could have an impact on the willingness of our customers to fly.”
What then of the Government walked away without a deal at the end of the negotiations, how difficult would that be for Flybe?
“It would be difficult for any airline, the airline industry is an open market, very competitive. I don’t believe for one moment the Government would do anything that is negative for the consumers,” Ms Ourmieres-Widener said.
“Maybe we are optimistic and some of our colleagues are very pessimistic. We are trying to talk to different MPs to explain to them how important this experience is, I think most of the MPs we are talking to understand that we have to do everything we can to not see any difficulty for travellers in the future.”
The Exeter-based airline, Europe’s largest regional carrier, sees 85% of its business booked in the UK and thus most of its revenue in sterling. But most of its costs are in dollars, the currency for airlines, and so it is exposed to the effects of the pound’s weakness.
“We are a small company compared to the other legacy carriers so we are doing everything to try to predict and hedge at the right level. It’s about making sure you can mitigate any risk and have a level of predictability in the risk,” said Ms Ourmieres-Widener.
She has not made the journey from Exeter by air (“not yet” she jokes), but is interested in seeing Flybe’s mid-afternoon service from Cardiff to London City Airport waiting on the apron.
So is she happy with how the route, started when rail services to London were disrupted by engineering work on the Severn Tunnel, is doing?
“We see a growth in the passenger numbers and we are doing some action to promote the route moving forward, so we think there is potential for more passengers. But yes, so far we are very happy with the route,” she said.
Is there a point at which the route, which was first introduced as temporary, needs to reach a certain performance?
“It’s an ongoing discussion with the airport, because the airport is very dynamic and we have a lot of plans to promote destinations. It’s too early to say that because the route is having an evolution of trend that is one that we were expecting. So we don’t have any date or plan to take any definite decision, just to improve the route performance.”
Will the electrification of the Great Western Mainline prove a challenge for the Cardiff-London service?
“First, it depends where you go in London. That’s really important, London City is a very different location from a business perspective, so there is a different market for London City,” she said.
“After that it will depend on the experience end to end. If you can provide competitive pricing like we are, it’s about having the most
efficient way. Our proposition is competitive and even more efficient on routes where we have train services everywhere in the UK, but it depends where you’re flying from and if you’re going for a business trip or for leisure.”
It’s the second time she’s talked about the importance of the customer experience, so is there something Flybe can do to make that customer experience for internal flights quicker and smoother?
The former Air France executive, who worked her way up from the airline’s maintenance department to become general manager for UK and Ireland and then vice president in New York, thinks there is.
“We have announced a big investment in IT, having an IT platform that is more flexible and allowing us to do things a bit differently is definitely a way forward. It will be a significant dimension of our strategy moving forward,” she said.
“Anybody could buy a ticket from the airport on their mobile app today, people can buy a ticket wherever they are. We already provide online check-in, we have bag drops.
“That’s the traditional way for an airline to provide solutions, as a regional carrier it should be even quicker, faster, smoother, you shouldn’t have to think about it because the process is so easy.”
Last month Flybe released a trading statement which referred to the pressures the airline was under from the weak pound and weak consumer demand. Ms Ourmieres-Widener admitted that Flybe was in a “challenging market.”
She said: “On most of the routes in the UK we are competing against the train, so our proposition is much stronger because we are faster than the train, [but] you need to be competitive on price so you need to keep your costs low to be able to offer a competitive price to the customer.
“On routes to Ireland or Europe it’s finding the right positioning and price for the customer.”
She added that Flybe is at an “inflection point” in its history and that the company had embarked on a complete review of its network.
“This study has been done, now the question is between the study and how we want to deploy that in the next two or three years, what do we do and which fleet.
“It’s not only the number of the destinations, it’s about the frequency, [the] best flights to optimise what we fly today. It’s not about big changes, it’s about really significant optimisation,” she said.
Although this is her first trip to Cardiff Airport as chief executive of Flybe, she is no stranger to the city, having come to the airport in her previous role at CityJet. She is also a keen rugby fan and thinks the Principaloty Stadium is “one of the best stadiums in the world” – although the last time she saw a match there France lost. But that’s sport, she adds.
Flybe has a great relationship with Cardiff Airport, she adds.
“They have a very professional team, they have many ideas. I think it’s a bit of a role model of a relationship you could have with an airport to create a successful partnership,” she said.
So what does she think the airport could do to attract more airlines?
“I think the airport is already doing many things: the infrastructure, the expansion they have done, the one they are planning, the improvement for security, there have been a lot of changes. The last time I was in Cardiff was three or four years ago and I can see many changes since then.”
Then she jokes: “But I don’t want to promote Cardiff Airport too much, because we are happy to be a very strong partner for them, we don’t want to see too many airlines arriving.”
Turning serious agan, she adds: “For us having a partner having a sustainable plan is important. Of course it would be difficult for us to see more competition on the routes we are flying, so we would like to see more players but not for the same routes.
“We are really trying to do as much as we can to promote Cardiff as a great airport to fly from.”
Can we expect any new Flybe services from Cardiff Airport to be announced in the near future? She says the airline is working with the airport on short term and long term prospects, looking into opportunities.
“We are working with them on charter opportunities for the winter season, we need to go a little more into the details,” she added.
“Opportunities are studied everyday. It’s about having the right idea with the right profile to make a profitable business case.”
Ms Ourmieres-Widener will be unveiling Flybe’s new five-year strategy in June. She says she thinks there is “massive opportunity” for Flybe.
“Flybe has a real core business and a business that is already digital in a digital world. Eighty per cent of our bookings are online and 82% of our customer bookings online are repeat customers.
“We want to [be] closer to our passengers by investing in technology, and we have to make sure that our infrastructure cost optimisation are following our network engineering
“It’s about being good in operations, making sure our customers see us as a very good product and giving the best service possible for a regional airline.
“We are not talking about giving champagne on board, but the service they expect from us: being on time and reliable, being a great place to work, and we never forget our top priority is safety of course.”