BDO appointed administrator of failed regional airline Flybmi
Accountancy firm BDO has been appointed administrator of collapsed regional airline Flybmi.
Business restructuring partners Graham Newton, Tony Nygate, and James Stephen will take on the roles of joint administrators.
Read more: Flybmi: Regional airline Loganair takes on cancelled routes
Nygate said: “As joint administrators, we are taking all necessary steps to ensure customers, staff and suppliers are supported through the administration process. Our job is to maximise recoveries and minimise distress for all parties, acting as smoothly and swiftly as possible.
“Customers can find information on the flybmi website regarding the steps they need to take to apply for a refund from their payment provider or travel company. We are also working with the Company’s employees to provide them with guidance on how to make a claim for monies which may be due to them. In addition, we are contacting suppliers to explain how to apply for monies owed to them.”
Flybmi announced the immediate cancellation of all its flights on Saturday night, leaving customers stranded.
It ran 17 aircraft on routes between 25 cities in Europe. The east Midlands-based company employed 376 people in Britain, Belgium, Germany and Sweden, the majority of whom have lost their jobs.
In a statement, the company said: “We sincerely regret that this course of action has become the only option open to us, but the challenges, particularly those created by Brexit, have proven to be insurmountable.”
“What’s interesting here is that while previous airline failures have blamed numerous factors, including increased competition and rising fuel costs, Flybmi has attributed some of the blame to Brexit,” says Glen Flannery, a reconstruction partner with law firm CMS.
“The airline cited a spike in carbon costs arising from the EU’s recent decision to exclude UK airlines from full participation in the EU’s Emissions Trading Scheme and doubts about being able to continue flying between European locations post-Brexit.
“The European Commission has started to implement its ‘no deal’ Brexit contingency plans. With effect from 1 January it has temporarily suspended the UK’s free allocation of carbon allowances, auctioning, and the exchange of international credits. This has created a huge amount of uncertainty for UK participants, the full effects of which have yet to play out.”
Yesterday it was announced Scottish airline Loganair would step in on three routes Flybmi operated from Aberdeen.
Read more: Easyjet eyes bid for struggling airline Alitalia
Loganair is to run flights from Aberdeen to Bristol, Oslo and Esbjerg, in Denmark, from 4 March.
It will also run flights from another Flybmi airport in Newcastle to Stavanger, in Norway, and Brussels.