Flybe’s chief executive Saad Hammad quits and sends shares plummeting
Flybe's chief executive Saad Hammad has quit unexpectedly after a three-year stint.
The Exeter-based firm said Hammad had left "with immediate effect" and that it was "time for a new CEO to lead the next phase of Flybe's long-term development".
As the news broke, the company's shares dropped 14.8 per cent.
Hammad said in the company statement: "Now is the right time for me to move on to a fresh challenge."
He'll be on gardening leave for a year, on his salary of £433,500, the firm confirmed.
Read more: Flybe boss wants national focus on regional issues over Heathrow v Gatwick
Hammad has overseen the airline's return to profitability; in July the budget airline reported its first profitable year as a publicly-listed company. Despite the positive results, the firm's shares have dropped significantly over the year though; they were above 90p at the end of 2015 and today are at 37p.
In an interview with City PM Hammad said: “All the airline share prices are down significantly. We’ve just got into profit for the first time, so now we’re going to continue down that track and I’m sure the share price will follow.”
He noted uncertainty around Brexit as one of the major troubles for Flybe and other airlines in 2016, along with terrorist atrocities and economic volatility.
Read more: Flybe backs Heathrow plans to keep the UK competitive post-Brexit.
“We want clarity. I think all airlines want clarity, actually,” he said. “What is concerning is this period of uncertainty. We don’t know what these arrangements are. It’s affecting customers, it’s affecting our costs, it’s giving us a lot of volatility to manage through.”
The airline had drastically cut jobs and wages under Hammad's leadership, and sold airport slots and exited unprofitable routes. This included the airline quitting its main London hub at Gatwick airport.
He joined the company in 2013, with a mission to help Flybe regain its wings and deal with soaring fuel costs, a slump in passenger numbers and higher airport charges.
Simon Laffin, Flybe's non-executive chairman, will step in as executive chairman as the airline goes scouting for a new boss.