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Home  »  UK Business News   »   Flybe set to close and cut remaining 45 staff after rescue talks fail

Flybe set to close and cut remaining 45 staff after rescue talks fail

Flybe

Flybe will be closed down after attempts to find a buyer were unsuccessful.

Sky News reports administrator Interpath Advisory, has terminated talks with potential buyers, which were reported to include Air France-KLM and the German carrier Lufthansa.

The decision was communicated to Flybe's remaining 45 employees on Wednesday.

The company went into administration last month.

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According to sources close to the process, "use it or lose it" rules relating to take-off and landing slots played a role in making the sale of the business too difficult to execute.

Flybe relaunched less than a year ago after investment from Cyrus Capital - A little-known investor with little experience owning aviation businesses.

The company was once one of Europe's largest regional airlines and was listed on the London Stock Exchange until 2019 when it was sold to a Virgin Atlantic Airways-backed venture.

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Flybe, based in Exeter, connected passengers flying to and from under-served UK destinations in the south-west, Midlands, and Scotland.

Its first insolvency occurred shortly after the pandemic began in early 2020.

Flybe operated flights to and from airports like Heathrow and Schiphol in Amsterdam.

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Thousands of passengers were hit by the collapse last month, even though Flybe was a far smaller company than it had been in 2020 when it was owned by Cyrus Capital.

Within hours of going into administration, more than 200 workers were laid off.

According to an insider, difficulties relating to the attitude of European authorities towards a temporary operating permit for Flybe that would have been provided by the UK's Civil Aviation Authority also played a role in the sale's impediment.

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It is now anticipated the corporation will be shut down and that negotiations will take place between Interpath and aircraft lessors.

A spokesperson for the administrators confirmed to Sky News that "discussions with parties regarding a sale of the business has concluded and that a statement will be made in due course".

Source:  Sky News

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