GB Airways - Restructuring
Nyras was asked to help GB Airways restructure, in order to create a competitive cost base that would turn the loss-making airline into a profitable business. GB Airways was a franchisee of British Airways (BA), independently owned by the Bland Group. Under the franchise agreement, GB purchased a number of services from BA. The franchise agreement had been negotiated in 2000, with many of the service contracts subject to retail prices inflation (RPI) increases, despite the fact that market rates were falling. GB’s cost base was therefore uncompetitive.
Nyras and GB staff worked closely to develop a wide‐ranging airline restructuring plan which included several elements:
- Revenue enhancement.
- Ancillary revenue enhancement.
- Engineering review.
- Ground handling review.
- Purchasing centralisation and overhead cost review.
- Crew efficiency.
- Product review, with seat pitch and flying schedule optimisation.
- Management information provision.
Nyras teamed industry professionals with GB management to develop practical and deliverable improvements. Our hands-on approach saw us working side by side with GB’s management staff, closely monitoring every stage of the project against the desired outcomes.
As a result of recommendations put forward and instigated by Nyras, GB Airways transitioned from an organisation with a loss of £6m, to deliver profits of £2m the following year and of £8m when GB Airways was sold.