Flybe flights cease as it collapses into administration
Europe's largest regional airline Flybe has collapsed into administration, sparking fierce condemnation from unions and politicians.
Flybe – the largest operator of domestic flights in the UK – operated from Birmingham Airport across the UK and also flew from there to European cities including Amsterdam, Geneva and Hamburg.
It announced in the early hours today that it had ceased trading with immediate effect and that administrators had been appointed. About 2,000 jobs with the airline, which has its headquarters at Exeter and operates about 75 aircraft, are at risk
Passengers due to fly from Birmingham Airport with the airline have been advised not to go there as all its flights have ceased.
A spokesperson for Birmingham Airport, where Flybe employs around 400 people and operated about 750 flights a week, said: “It is with regret to receive the news that Flybe has collapsed and therefore ceased trading with immediate effect.
“Our priority now is to support passengers who were scheduled to travel from Birmingham over the coming days by providing on site customer support and information.
“Those booked with Flybe are advised to visit caa.co.uk/news for advice. Passengers due to travel with Flybe should not to come to the airport as there will be no more flights with the airline from the UK.
“A number of routes operated by Flybe are served by other carriers from Birmingham, and we already have arrangements for two airlines to replace five of its routes in the next few weeks.
"We will continue to engage with other airlines to replace the remaining capacity for our region and customers.”
Deputy chief reporter Jordan Reynolds is reporting from Birmingham Airport today:
Flybe has 11 bases across the UK. It flew to a total of 27 destinations in the UK and Europe from Birmingham Airport.
A statement on flybe’s website said: “Flybe entered administration on 5 March 2020 and Alan Hudson, Joanne Robinson, Lucy Winterborne and Simon Edel of EY have been appointed as joint administrators.
“All flights have been grounded and the UK business has ceased trading with immediate effect."
The UK Civil Aviation Authority said that for flights operated by franchise partners, passengers should make contact with their airline.
Flybe customers are urged to make their own alternative travel arrangements via other airlines, rail or coach operators.
Operator West Midlands Trains, which runs West Midlands Railway and London Northwestern services, have offered stranded passengers free travel today along with West Coast mainline operator Avanti.
The carrier had narrowly avoided going bust in January but has continued to lose money since then.
Confederation of British Industry regional director for the West Midlands, Richard Butler, said: “Following Flybe’s collapse, our thoughts are with their employees and passengers trying to get home. Understandably they will be looking for reassurances today – addressing their concerns must be a priority.
“Birmingham is a key hub for Flybe and the airline is critical to the region’s connectivity."
He said the Government must help protect those who have lost their jobs and secure vital regional connectivity.
"Better transport links are essential for West Midlands firms and fundamental to the Government’s ambitions of ‘levelling up’ the UK’s economic performance," added Mr Butler.
More coverage:
A drop in demand caused by the coronavirus had "made a difficult situation worse" for Flybe, an airline source said.
Crisis talks had been 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.
Flybe was bought by a consortium of Virgin Atlantic, Stobart Group and Cyrus Capital in February 2019, after running into earlier financial problems.
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".
WATCH: Why has Flybe collapsed?
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 been "unable 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."
Read the Flybe message posted online here:
The company said all Flybe flights were immediately grounded and advised all passengers not to travel to airports unless alternative flight arrangements had been made.
Speaking to Sky News, Transport Secretary Grant Shapps said the Government would be asking other travel operators "to assist" stranded passengers but did not say who would be paying for the arrangements.
"The concern is for people who have found themselves stranded and we've got people at the airport to be able to assist and we're writing to all the other companies - coach companies, train companies - and asking them to assist," he said.
Earlier on Thursday the Transport Secretary tweeted it was "very sad" the airline had gone out of business and said the Government would be working with Flybe's staff to help them "find new work in travel or other industries".
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.
West Midlands Mayor Andy Street says the future focus must be to ensure Birmingham Airport remains connected with other parts of the country.
He said: "I am disappointed to hear about Flybe’s collapse, and my thoughts are with staff and passengers.
"It has unfortunately become clear that their business model is no longer sustainable and the Government, which was right to step in the first time, cannot keep propping them up.
"The main focus now is on making sure Birmingham Airport maintains its excellent connectivity, and disruption for passengers is kept to a minimum.
"I am pleased the airport already has plans to backfill routes, and I will work with them to help fill as many of these as possible."
Oliver Richardson, national officer for major airline industry union Unite, told reporters: "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.
"Yet again more airline workers face an anxious future and the Government has to respond and provide them with all necessary support."
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.
"For the latest advice, Flybe customers should visit the CAA website or the CAA's Twitter feed for more information.
"Flybe also operated a number of codeshare partnerships with international airlines. If you have an international ticket you should make contact with that airline to confirm your travel arrangements."
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."
