- Flybe CEO leaves with immediate effect
- Reported first profit in recent years in March
No explicit reason has been given for the shock departure of Saad Hammad as CEO of Flybe with immediate effect “by mutual agreement.” An announcement by the company said that both parties believed it was the right time for a change.
Hammad joined the regional airline in August 2013 and has had something of a roller coaster ride. When he took over, the airline was running out of cash. Hammad cut 1,000 jobs, dropped routes and closed bases. He reoriented the fleet replacing larger Embraer jets with smaller Bombardier turboprops. The airline reported a £5.5m pre-tax profit for the year to March 31 turning around an adjusted pre-tax loss of £25.4m in 2015. Share price more than doubled to around £1.50 before falling back to £0.40.
In a written statement the airline said Hammad is entitled to receive 12 months notice under the terms of his contract so he will continue to receive his salary of £433,000 and other benefits until October 2017. He will be on gardening leave for the next 12 months.
Hammad will receive £30,000 compensation for the loss of benefits and for waiving his employment rights. Flybe has also agreed to pay £4,000 towards his legal fees for obtaining advice on the termination of his employment.
Simon Laffin non-executive chairman will take on the role of executive chairman until a new chief executive is found.
According to the most recent set of full-year statistics, Flybe is England’s fourth largest airline, behind EasyJet, British Airways and Thomson Airways.
The reason for Hammad’s exit could yet be revealed when the company reports its half-year results on November 9.
Saad Hammad said: “I am very proud of what we have achieved over the last three years with a major turnaround in Flybe. Now is the right time for me to move on to a fresh challenge. I would like to thank all company employees for their hard work, passion and commitment and wish them all the best.”
Simon Laffin said: “The Board would like to thank Saad for his energy and drive which has been a major contributor towards Flybe’s transformation over the last three years. He mapped out a clear vision for the Group and led it to a significantly stronger position. We wish him well for his next challenge. Whilst the whole aviation industry faces a challenging market environment, Flybe remains well placed. Our strategy remains to focus on regional routes and to provide an excellent service to our customers.”
Brian Strutton, General Secretary of pilots’ union BALPA said: “We are sorry to hear that CEO Saad Hammad will be moving on from Flybe. We have enjoyed a good relationship with him and he has had a positive impact on the airline during his three years. We wish him well for the future. BALPA hopes that a new chief executive is found soon so we can begin to build new relationships and ensure our members in Flybe have some stability in their senior management team.”
