Fears for jobs and holidays as airline Flybe collapses

The carrier narrowly avoided going bust in January but continued to lose money since then.

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A drop in demand caused by the coronavirus ‘made a difficult situation worse’ for Flybe, an airline source said.

The airline, which uses Doncaster’s airport, announced in the early hours of this morning that it had ceased trading with immediate effect and that administrators had been appointed.

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Crisis talks were held throughout yesterday 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 chief executive Mark Anderson said the company had made ‘every possible attempt’ to avoid collapse but had been ‘unable to overcome significant funding challenges’.

All Flybe flights are grounded and passengers are urged not to travel to airports unless alternative flight arrangements have been made.

Unions and politicians have reacted angrily over the collapse of Flybe just weeks after the company narrowly avoided going under.

Oliver Richardson, national officer for major airline industry union Unite, said: “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.”

UK Civil Aviation Authority chief Richard Moriarty said: “This is a sad day for UK aviation and we know that Flybe's decision to stop trading will be very distressing for all of its employees and customers.

“We urge passengers planning to fly with this airline not to go to the airport as all Flybe flights are cancelled.”

The Department for Transport said: “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.”