Regional airline Flybe 'at risk of collapse' and holding emergency financing talks - reports

Europe's largest regional airline Flybe could be at risk of collapse, according to reports.

Monday, 13th January 2020, 6:33 am
Updated Monday, 13th January 2020, 9:11 am
According to reports, Flybe, could be at risk of collapse.
Photo credit: Steve Parsons/PA Wire
According to reports, Flybe, could be at risk of collapse. Photo credit: Steve Parsons/PA Wire

It was reported by Sky News over the weekend that the airline was reportedly involved in discussions over potential emergency financing after suffering rising losses.

Flybe had been holding talks with the Department for Business, Energy and Industrial Strategy and the Department for Transport (DfT) to inquire into whether or not the Government could assist with emergency finance, it has been claimed.

In a statement, a Flybe spokeswoman said: “Flybe continues to focus on providing great service and connectivity for our customers, to ensure that they can continue to travel as planned.

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"We don't comment on rumour or speculation."

Spokesmen for the two Government departments issued the same statement.

Approximately 2,000 jobs are said to be at risk.

The company currently offers more UK domestic flights than any other in the UK and flies around 8.5million passengers to 170 European destinations every year.

Flybe offers trips from both Newcastle and Durham Tees Valley Airports, and also provides flights for passengers between cities which have connections via direct trains in Britain.

This includes Manchester-Glasgow, Birmingham-Edinburgh, Exeter-Manchester and Exeter-London City.

Launched in 1979, Flybe was bought by a consortium led by Virgin Atlantic following poor financial results in February last year.

Connect Airways, which consists of Virgin Atlantic, Stobart Air and Cyrus Capital, paid around £2.2million for Flybe's assets and operations and Flybe completed the sale of its assets to the group in the deal worth only 1p per share.