UK Business News

Flybe announces collapse after failing to raise additional funding

The Exeter-based carrier has gone into administration as its latest round of funding failed to gather enough funding to financially support the airline; therefore putting 2,000 jobs at risk.

Flybe revealed that the impact of the coronavirus pandemic caused demand for flights to significantly drop and was partly to blame for the closure.

Unless an alternative flight has been arranged, Flybe’s website now advises travellers not to travel to the airport if they are due to fly with their company.

Flybe boss Mark Anderson said he was “very sorry” for the firm’s collapse.

In a statement, the chief executive said the company had made “every possible attempt” to avoid collapse but had been “unable to overcome significant funding challenges”.

The fall came as ministers rejected a request for a £100m state loan following seven weeks of negotiations. Shareholders also chose not to supply further funding due to negative impacts being caused by coronavirus.

Flybe’s bankruptcy has come only a week before a budget that it hoped would help bolster its precarious finances.

However, the airline’s owners Connect Airways – a consortium of Virgin Atlantic, Stobart Air and the hedge fund Cyrus Capital – have pulled the plug, a little over a year after buying it.

The UK Civil Aviation Authority tweeted shortly after 3am: “Flybe has entered administration. All Flybe flights are cancelled. Please do not go to the airport as your Flybe flight will not be operating.

“For flights operated by franchise partners, passengers should make contact with their airline.”