Flybe collapse: Passengers told not to travel as 2,000 jobs at risk
British airline Flybe has collapsed into administration to leave 2,000 jobs at risk after it failed in its bid to secure a £100m government loan.
The budget regional carrier blamed 2020’s coronavirus outbreak for draining customer demand for flights, and warned passengers not to travel to airports.
Administrator EY has taken charge of the business and all flights have been grounded, as Flybe’s collapse put 2,000 staff jobs at risk.
“Flybe entered Administration on 5 March 2020 and Alan Hudson, Joanne Robinson, Lucy Winterborne and Simon Edel of EY have been appointed as Joint Administrators,” the company’s website read.
“All flights have been grounded and the UK business has ceased trading with immediate effect.”
It told customers:
If you are due to fly with Flybe, please DO NOT TRAVEL TO THE AIRPORT unless you have arranged an alternative flight with another airline. Please note that Flybe is unfortunately not able to arrange alternative flights for passengers.
If you have a booking sold by another airline that includes travel on a Flybe flight, please contact the relevant airline or travel agent to confirm if there is any impact to your travel plans.
Customers are also advised to monitor the Civil Aviation Authority website for further information
Chief executive Mark Anderson wrote to staff overnight to say: “Despite every effort, we now have no alternative – having failed to find a feasible solution to allow us to keep trading.
“I am very sorry that we have not been able to secure the funding needed to continue to deliver our turnaround.”
Airlines have offered discount rates to passengers affected by the collapse, with Ryanair launching rescue fares this morning starting from £19.99.
British Airways are also offering a special £50 fare to Flybe customers, and will also bring stranded members of staff home for free.
Easyjet has said it will fly Flybe passengers for a fee of £65 until the end of May if customers can provide a Flybe booking reference.
Government responds to Flybe collapse
A government spokesperson responded to say it would seek to help Flybe staff to secure new jobs and work with airlines on taking over Flybe’s routes.
“We are working closely with industry to minimise any disruption to routes operated by Flybe, including by looking urgently at how routes not already covered by other airlines can be re-established by the industry. “
Flybe almost collapsed in January but agreed a government loan package designed to keep it trading. That deal was controversial after the government opted not to save Thomas Cook.
Flybe’s rescue package also came after Virgin Atlantic led a takeover of the firm along with Stobart and US private equity firm Cyrus Capital last year. But the £30m the consortium injected into the firm did not prove enough to keep it going.
That led rivals like Ryanair to blast the government’s intervention.
Virgin Atlantic ‘disappointed’
Virgin Atlantic said it was “deeply disappointed” at Flybe’s collapse. It said it has put £135m into the business to keep the airline flying for an extra year.
Flybe had been reliant on not only the £100m package but also hopes the Budget would include changes to Air Passenger Duty taxes.