Flybe collapses into administration
All its flights are grounded - with passengers being told not to turn up at airports today
Last updated 5th Mar 2020
Europe's largest regional airline Flybe has collapsed into administration, sparking fierce condemnation from unions and politicians.
The carrier narrowly avoided going bust in January but continued to lose money since then.
Frank McCready, from Kilmarnock, was flying back to Glasgow and was diverted to Manchester.
He spoke to Clyde 1 from on board the plane: "I think the staff were a bit confused, getting mixed messages, being told it was a refueling issue. Then the captain confirmed they'd been told by staff at Manchester Airport that Flybe had been placed into administration.
It was quite emotional. The passengers took part in a collection for those affected. Everybody was patient because I think they realised a delay for us was nothing compared to potential job losses."
The Chief Executive has sent an email to staff saying the Covid-19 outbreak 'has put additional pressure on an already difficult situation'.
The airline announced in the early hours of Thursday it had ceased trading with immediate effect and that administrators had been appointed.
Crisis talks were held throughout Wednesday to try to secure a rescue package, but no deal was agreed.
All Flybe flights and those operated by sister airline Stobart Air have been cancelled, the Civil Aviation Authority said in a statement. Flybe was bought by a consortium of Virgin Atlantic, Stobart Group and Cyrus Capital in February 2019, after running into earlier financial problems.
Crisis talks were held throughout Wednesday to try to secure a rescue package, but no deal was agreed.
Flybe operated services from Glasgow to Birmingham, Belfast, Southampton and Exeter.
A spokesperson for AGS Airports, which owns and manages Glasgow and Southampton airports, said: “The loss of Flybe is a devasting blow for the airline’s employees and the tens of thousands of passengers who relied on its routes.
"It unfortunately brings into stark focus the fragility of the UK’s domestic connectivity. Earlier this year the UK Government committed to levelling up all regions of the UK by conducting a review of regional connectivity.
"It’s vital this work is progressed as a matter of urgency and reforming Air Passenger Duty is part of that review. We are already speaking to other airlines about backfilling the routes operated by Flybe for which there is clear demand.
The CAA said it has not been commissioned by the Government to operate flights to repatriate stranded travellers - as happened when airlines Monarch and Thomas Cook failed - because there is "enough capacity in the market for people to travel via alternative airlines, rail and coach operations''.
A Government spokesman said it has asked coach and train operators to accept Flybe tickets and airlines to offer reduced fares "to ensure passengers can make their journeys as smoothly as possible''.
In a statement, chief executive Mark Anderson said the company had made every possible attempt'' to avoid collapse but had beenunable to overcome significant funding challenges''.
"The UK has lost one of its greatest regional assets,'' Mr Anderson said.
"Flybe has been a key part of the UK aviation industry for four decades, connecting regional communities, people and businesses across the entire nation.
"I thank all our partners and the communities we have been privileged to serve. Above all I would like to thank the Flybe team for their incredible commitment and dedication.''
Unions and politicians have reacted angrily over the collapse of the company - which had a staff of around 2,000 - just weeks after the company narrowly avoided going under.
Oliver Richardson, national officer for major airline industry union Unite, said: "Unite members and the entire staff at Flybe, will be feeling angry and confused about how and why the airline has been allowed to collapse.
"It is simply outrageous that the government has not learned the lessons following the collapse of both Monarch and Thomas Cook that the much promised airline insolvency review has still not materialised.
"While other European countries are able to introduce measures to keep airlines flying when they enter administration, the UK remains unable or unwilling to do so.''
Andy McDonald, Shadow Transport Secretary, said the loss of Flybe would cause "real anxiety'' throughout the country.
He said: "The Civil Aviation Authority is sadly very well practised, following the collapse of Monarch and Thomas Cook, at responding to airline failure and looking after passengers. No doubt they will do that once more.
A spokesman from the Department for Transport said government staff would be on hand at all affected UK airports to assist Flybe passengers in making alternative arrangements.
"The vast majority of Flybe routes are served by different transport options, and we have asked bus and train operators to accept Flybe tickets and other airlines to offer reduced rescue fares to ensure passengers can make their journeys as smoothly as possible,'' the spokesman said.
"We know this will be a worrying time for Flybe staff and our Jobcentre Plus Rapid Response Service stands ready to help them find a new job as soon as possible.
"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.''
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