Flybe finance director departs in another setback for airline

Flybe Group’s CFO is to leave the company, dealing another blow to the struggling regional airline as it grapples with an oversupplied European aviation market. The airline Tuesday announced that Philip de Klerk has resigned to become finance chief at Low & Bonar, a performance materials manufacturer. He will leave Flybe on October 1. The departure of de Klerk comes as Flybe is expected to post a full-year loss. Last month, the airline warned investors that it would fall into the red for the year to March 31, rather than the previously anticipated small profit. The airline is struggling with the effects of an over-optimistic order for 24 regional jets from Brazil’s Embraer placed at the time of its initial public offering in 2010. Flybe has swapped all but four of the jet orders for smaller turboprops — propeller-driven aircraft — but still faces significantly increasing its capacity at a time of overcapacity and weak fares in the European air travel market and competition from train operators. The UK regional airline is attempting to improve its fortunes by reducing capacity and cutting costs. It is also undergoing an IT system upgrade, which it said would reduce profits by GBP5m to GBP10m for the year. The departure of de Klerk comes after a bumpy decade for Flybe. The regional airline was forced to restructure after it became heavily lossmaking following a sharp decline in leisure and regional air travel after the 2008 financial crisis.<br/>