Flybe Enters Into Administration; All Flights Grounded

flybe 05mar20 lt

Struggling UK airline Flybe has ceased operations Thursday and gone into administration.

The regional airline, which was already reeling under financial issues, was delivered the final blow by the ongoing coronavirus outbreak that has hurt the demand for air travel.

Exeter-based Flybe said in a statement that it entered administration on Thursday. The airline added that all its flights have been grounded and its UK business has ceased trading with immediate effect.

The airline advised customers to not travel to the airport unless they have arranged an alternative flight with another airline.

Flybe's chief executive Mark Anderson reportedly said in a letter to the airline's staff that despite every effort, the airline failed to find a feasible solution that would enable it to keep trading.

The airline's fall puts thousands of jobs at risk.

Flybe was launched in 1979. Until its sale to the Connect Airways consortium last year, Flybe was the largest independent regional airline in Europe. The airline was acquired by the British consortium that included Virgin Atlantic, Stobart Aviation and Cyrus Capital Partners.

But continuing financial woes led the consortium to appeal to the UK government for additional support earlier this year. While the government agreed to help the airline by granting a 100 million pounds rescue loan, Flybe's competitors were against the move.

IAG, the owner of British Airways, filed a complaint with the European Union, alleging that Flybe's rescue violated state aid rules.

Flybe had expressed concerns over the impact of the coronavirus outbreak on bookings, raising doubts on whether the government loan would be granted.

On Thursday, the International Air Transport Association or IATA updated its analysis of the financial impact of the novel coronavirus or COVID-19 public health emergency on the global air transport industry. The agency said it sees 2020 global revenue losses for the passenger business of between $63 billion and $113 billion.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Delivery services company DoorDash has introduced ultra-fast grocery deliveries with DashMart in Chelsea, New York City. The company said it aims to deliver in 10-15 minutes and plans to expand its new service in select DoorDash grocery and convenience partners over the next year. With over 2,000 items, DashMart offers a wide assortment of fresh and frozen grocery staples, snacks, household goods, and local products. Ontario, Canada-based Erie Meat Products Ltd. is recalling approximately 1,224 pounds of fully cooked chicken bologna products, according to the U.S. Department of Agriculture's Food Safety and Inspection Service or FSIS. The chicken bologna products were imported and distributed into the United States without the benefit of FSIS import reinspection. The U. S. Food and Drug Administration or FDA has issued a public health alert against Fulvic Care Powder and Tablets from Ontario, Canada -based Black Oxygen Organics due to elevated levels of lead and arsenic. The agency advised consumers not to use Fulvic Care Powder and Tablets from Black Oxygen or give the products to pets due to elevated levels of lead and arsenic.
Follow RTT