The UK-based airline has gone into administration, and this leaves about 2,400 jobs at risk and causes unavoidable disruption to the itinerary and travel plans of hundreds of thousands of travelers.
After talks with the government on Wednesday to secure a deal for a rescue package, the company came out to publicly announce that it will cease trading with immediate effect. The Civil Aviation Authority further announced that all Flybe flights and those operated by its franchise partners Stobart Air, Eastern Airways and Blue Islands, have been cancelled, and advised customers to come up with their own alternative travel arrangements.
Flybe’s eventual collapse follows several months of financial difficulties related to increase in fuel costs and gruel competition from bigger airlines. These circumstances were also worsened by the downward fall of demand for flights due to the ongoing pandemic.
Flybe chief executive Mark Anderson stated in a statement that the company had been “unable to overcome significant funding challenges”. He added that “the UK has lost one of its greatest regional assets,” and also thanked Flybe employees for “their incredible commitment and dedication.”
Transport Secretary Grant Shapps in a tweet, expressed his disappointment in seeing Flybe go out of business after four decades of service. He also assured affected members of the public that the government is “urgently working with industry to identify how key routes can be re-established by other airlines as soon as possible”, and will also be going to work to help Flybe staff find new job placements.
Flybe is the second major British airline to face bankruptcy in six months, after the collapse of Thomas Cook last September that saw the loss of around 11,000 jobs.
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