Flybe has signed a contract with maintenance provider Monarch Aircraft Engineering Ltd (MAEL), resulting in the transfer of 133 employees.

Prospect negotiator John Stevenson said: “The current financial climate has severely limited the choices available to Flybe and reluctantly we recognise that faced with the alternative, this is the best way to secure the continued employment of members.

“The selection of MAEL is commended given its award-winning track record, which we hope will secure employment at both locations. Hopefully this is a turning point, which will help Flybe return to profitability and create a stable engineering base from which to move forward. Although Flybe is not out of the woods yet, this is a major step in the right direction.”

Attention will now focus on the 133 employees who are directly affected by the changes. The union has had talks with MAEL and will continue its dialogue with Flybe management over measures to support staff through the transition, including discussions over TUPE arrangements and, where unavoidable, good quality severance arrangements.

The letter of intent signed today will see the outsourcing of Flybe’s line maintenance, hangar maintenance, and stores and logistics operations at Birmingham, Manchester, East Midlands and Gatwick Airports. The company has already outsourced its call centre and is exploring similar options for its customer focus function.