- Bankruptcy after 3 years
- 276 workers were dismissed by management
- About 75,000 customers had future reservations
- Damage caused by delayed delivery of aircraft
- Rivals Seeing a Recovery in Demand
LONDON (Reuters) – British regional airline Flybe suspended trading for the first time in three years on Saturday, canceling all flights and laying off 276 employees.
A statement posted on Flybe’s website said the company, which operated scheduled flights from Belfast, Birmingham and Heathrow in the UK to Amsterdam and Geneva, had entered management control in the form of creditor protection. .
“Flybe is currently on a trading halt and all Flybe-operated flights to and from the UK have been canceled and will not be rescheduled,” the company said.
People planning to fly were advised not to go to the airport.
A spokesman for the operator, Interpath Advisory, said about 75,000 Flybe customers have made future bookings, which are currently not allowed.
Birmingham-based Flybe operated flights on 21 routes to 17 destinations in the UK and Europe using eight leased Q400 turboprop aircraft.
Interpath’s David Pike and Mike Pink have been appointed co-admins of Flybe.
Pike said Flybe has struggled to withstand a number of shocks since its relaunch last year, especially after delays in deliveries of 17 planes from lessors, in an effort to restore capacity and remain competitive. was severely damaged.
He said scaled-down elements of Flybe’s operating platform will be put on hold for a short period of time while the bailout deal is possible. He encouraged those involved to contact them urgently.
An Interpath spokesperson said 45 of Flybe’s 321 employees are being retained for the time being.
The British Civil Aviation Authority (CAA) said it would provide advice and information to affected passengers.
“It’s always sad to see an airline go into control and the decision to stop trading with Flybe is painful for all employees and customers,” said Paul Smith, CAA’s chief consumer officer. I know it will be
Hit by the UK’s COVID-19 pandemic lockdown, Flybe first came under control in March 2020, affecting 2,400 jobs.
In October 2020, she was sold to Thyme Opco Ltd, a company controlled by Cyrus Capital, and resumed operations, albeit on a smaller scale, in April 2022.
Flybe’s demise contrasts with the post-pandemic recovery in air travel demand.
Europe’s largest low-cost carriers Ryanair (RYA.I) and Britain’s EasyJet (EZJ.L) are reporting record summer bookings, prompting consumers to stay ahead despite a looming recession. indicate that are still keen to travel.
Louise Hay, transportation spokesperson for the opposition Labor Party, said Flybe’s collapse was “devastating news” for staff and customers.
“Passenger protections are not strong enough. For years, ministers have sat in silence and failed to introduce the long-promised airline bankruptcy law,” she said. .
Unite unions said the government failed to learn lessons from Flybe’s initial collapse.
Murinmay Day and Akriti Sharma, Bengaluru; Reporting by James Davey, London; Editing by William Mallard and Jason Neely
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