Flybe in ‘rescue’ talks to avoid administration
Rescue talks under way for Europe’s biggest regional airline
Flybe, the regional airline, is hoping government intervention will prevent it from collapsing into administration, it has emerged.
Europe’s biggest regional airline, was involved in rescue talks on Sunday night less than a year after being bailed out by a Virgin Atlantic-led consortium.
Sky News reported that Flybe, which handles more than half of Britain’s domestic flights outside London, has been trying to secure additional financing amid mounting losses.
Accountancy firm EY is understood to be on standby to handle an administration. More than 2,000 jobs are at risk if the company collapses.
One source close to Flybe told Sky that the Department for Transport and Department for Business, Energy and Industrial Strategy had been involved in the discussions.
Flybe operates about 75 aircraft and serves more than 80 airports across the UK and Europe.
Under a deal last March, a consortium comprising Virgin Atlantic, Stobart Group, which owns Southend Airport, and Cyrus Capital Partners acquired Flybe’s operating assets.
In a statement issued just before midnight, the company said: “Flybe continues to provide great service and connectivity for our customers while ensuring they can continue to travel as planned.
“We don’t comment on rumour or speculation.”