Passengers Stranded as Flybe Heads into Administration

Written by: Keith Tully

Published: 5th March 2020

Flybe airlinePassengers have been left stranded in various parts of the country after Flybe called in administrators and ceased trading across its business with immediate effect.

The loss-making airline has long played a key role in the UK’s domestic air travel sector but has succumbed to a series of ongoing operational challenges and a lack of access to finance.

Flybe has been seeking to secure emergency funding in the shape of a £100 million loan from the government but that support has not been forthcoming.

Although the company was already struggling to avoid collapse early in 2020, its finances have taken a further turn for the worse in recent weeks with the coronavirus outbreak leading to a downturn in flight bookings.

There are concerns among industry watchers that all airline companies will find themselves dealing with significant financial strains over the course of the next few months as the coronavirus situation continues to cause disruption worldwide.

Indeed, some analysts are suggesting that Flybe could soon be followed into administration by other airline operators and there are worries as well about businesses within the supply chains of those companies.

In the short-term, Flybe is telling its customers as of March 5th not to travel to the airports where they were scheduled to fly because their flights have been cancelled and alternative arrangements are not being made by the company.

There are around 2,000 people employed directly by Flybe and they could be set to lose their jobs, with the union GMB suggesting that a further 1,400 jobs within the company’s supply chain could also be under threat as a result of the Exeter-based airline’s collapse.

In a note to his staff, Flybe’s chief executive Mark Anderson wrote that every effort was made to secure rescue funding to keep the airline afloat but a “feasible solution” in the end could not be found.

“I am very sorry that we have not been able to secure the funding needed to continue to deliver our turnaround,” he wrote.

A statement given on behalf of the government said: “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-stablished by the industry.”

Keith Tully

Keith Tully

Join Keith Tully on Linked In Follow Keith Tully on Twitter

Keith has been involved in Business Rescue since 1992, during which time he’s worked for both independent and national firms. His specialties include company restructuring matters and negotiating with HMRC on his clients behalf.

Meet our Team of Experts
Director Support - Business suffering from Cash-Flow Problems?
If your company is financially distressed, we also offer the below services:
Business debt recovery

  • Recover Unpaid Invoices of £5k+
  • Expert Credit Control Services
  • Stop Late Payers & Bad Debts
Visit Site
Time to pay experts

  • Get Breathing Space with HMRC
  • Support with Business Tax Arrears
  • 35 Years HMRC Negotiation
Visit Site
UK Business Finance

  • Rejected for a CBILS Loan?
  • Get Emergency Business Funding
  • Supporting 1000+ UK Companies
Visit Site
Who we help
  • Company Directors
  • Finance Directors
  • Sole Traders
  • Accountants
  • Small Businesses
  • Large Businesses
  • Partnerships
Contact our team
Jonathan Munnery
Gillian Sayburn
Julie Palmer
or Find your Nearest Office

Here at Real Business Rescue we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See PRIVACY POLICY

Business Rescue Advice for Directors
Free Guide for Limited Company Directors
Business Rescue Advice for Directors
  • How to manage company cash flow problems
  • Advice on dealing with HMRC
  • Understanding rescue and closure options
  • And much more...
Free Guide Download
Dealing with your Insolvent Clients
Business Rescue Guide for Accountants
Dealing with your Insolvent Clients
  • Helping you advise insolvent clients
  • Spotting signs of client distress
  • Exploring business rescue options
  • And much more...
Free Guide Download
Our numbers speak for themselves
Number of UK Offices
Directors Helped
Licensed Insolvency Practitioners

This site uses cookies to monitor site performance and provide a more responsive and personalised experience. You must agree to our use of certain cookies. For more information on how we use and manage cookies please read our PRIVACY POLICY