Flybe in last-ditch talks to avert collapse

Wed, 04 Mar 2020

Flybe, Britain’s biggest domestic airline, has warned the government that it could collapse within days after a slump in bookings triggered by the coronavirus.

Sky News has learnt that Flybe has renewed a plea for ministers to provide emergency financial support, even as ongoing talks about a state loan on commercial terms appear to have been rejected.

Sources said on Wednesday that there was a possibility that Flybe could fall into administration within a matter of days, although "last-ditch" discussions involving its shareholders and the government were continuing.

One insider said the chances of the airline surviving until a promised review of Air Passenger Duty (APD) charges in next Wednesday's Budget now looked "more remote".

"The Budget now looks a long way off," said the source.

"An already difficult situation has been made a lot worse."

The outbreak of the coronavirus, which has hit hundreds of airlines around the world, has prompted a "collapse" in bookings at Flybe.

The airline, which is part-owned by Sir Richard Branson's Virgin Atlantic, is said to have requested additional government support in recent days to mitigate the impact of Covid-19.

Its other shareholders are Stobart Group, a listed infrastructure company, and Cyrus Capital Partners, a hedge fund.

 

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