Guest Posted January 13, 2020 Share Posted January 13, 2020 https://www.theguardian.com/business/2020/jan/13/flybe-in-rescue-talks-to-stave-off-collapse Flybe on the brink as government urged to step in Europe’s largest regional airline seeks state help to stave off collapse Gwyn Topham Transport correspondent @GwynTopham Mon 13 Jan 2020 18.28 GMTFirst published on Mon 13 Jan 2020 09.28 GMT The government has been urged to do “whatever it takes” to ensure the survival of Flybe, Europe’s largest regional carrier, as trade unions and MPs demanded the rescue of an airline that operates almost two in five British domestic flights. The Exeter-based airline, which flies 8.5 million passengers a year between 56 airports across the UK and mainland Europe, is seeking financial help from ministers to stave off a collapse that would put more than 2,000 jobs at risk. The airline and government declined to comment on reports of ongoing talks between the carrier and the Department for Business, Energy and Industrial Strategy and the Department for Transport, about whether the government might provide or facilitate emergency financing. Sky News reported on Monday evening that Flybe had asked the government to defer a multi-million pound air passenger duty bill in order to see the airline through the rest of the winter. Mark Anderson, the chief executive of Connect, told Flybe staff in an email on Monday morning: “We continue to operate as normal … I do appreciate that the headlines are disturbing but I want you to know that we are determined to everything we can to make this work. “What I now ask from all of us is that we all remain focused on our responsibilities and continue to work and support each other as a team to deliver what we know we can do.” Trade unions and MPs said that the airline provided crucial connectivity for the regions and demanded the government intervene. The pilots’ union, Balpa, said the government should do “whatever it takes” to save the carrier. Brian Strutton, Balpa’s general secretary, said: “If Flybe didn’t exist, it would have to be invented. The importance of that regional connectivity cannot be overstated.” He said that cities such as Exeter, Southampton, Birmingham and Cardiff relied on Flybe for air links and economic prosperity, while Northern Ireland, the Channel Islands and the Isle of Man would also suffer if the routes suddenly disappeared. “The government must recognise that the UK cannot afford to lose yet another airline, and the markets that Flybe serves cannot afford to lose their air connections which help businesses thrive. So we urge the government to take every possible action to keep Flybe flying.” The shadow transport secretary, Andy McDonald, said: “Flybe is a hugely important airline for UK domestic aviation and its financial predicament is a real concern.” Flybe is threatening to become the third significant airline collapse in the UK in less than two and a half years, following the failure of Monarch Airlines in October 2017 and Thomas Cook in September 2019. Flybe has long struggled to balance the books and successive plans to revitalise and streamline its operations have only just kept it airborne. The airline was bought last February by a consortium led by Sir Richard Branson’s Virgin Atlantic. Connect Airways, which consists of Virgin Atlantic, Stobart Air and Cyrus Capital, paid £2.2m for Flybe’s assets and operations. Flybe completed the sale in a deal worth only 1p per share after poor financial results. Prior to the deal the London-listed airline had made losses of almost £20m in 2017-2018 and had warned investors it was expecting greater losses for 2018-2019. Virgin Atlantic did not respond to requests for comment. The airline led last year’s deal so Flybe could feed more domestic passengers to connect with Virgin’s long-haul operation at Heathrow. The failure of Flybe even before its rebranding as Virgin Connect is complete would put Virgin’s wider expansion plans at Heathrow in question. 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. We don’t comment on rumour or speculation.” Spokesmen for the two government departments issued the same statement: “We do not comment on speculation or the financial affairs of private companies.” Flybe’s fleet of mainly 80-seat planes serves 26 domestic destinations, providing fast links between parts of the UK where road and rail alternatives are slow, or unavailable – not least Northern Ireland to the mainland. One key route, London to Newquay, relies on state subsidy. Its focus, however, on domestic routes with direct rail services, such as Manchester-Glasgow or Birmingham-Edinburgh, also puts it at the potential sharp end of any rising “flygskam” or flight-shaming trend. Improved journey times and reliability of new trains on the Great Western Railway from Exeter to London have also raised competition. Unite, the UK’s largest union, said it was seeking an urgent meeting with the Exeter-based company. Its assistant general secretary for transport, Diana Holland, said: “The government must demonstrate that it has learned the lessons from the collapse of Monarch, which it failed to apply during the collapse of Thomas Cook.” The Prospect union, which also represents Flybe staff, said the reports were troubling. Tony Bell, the national secretary, said: “As the main union at Flybe, Prospect will seek immediate talks with the company to clarify the situation. Flybe provides much-needed connectivity to many of our smaller and regional airports – it is important that that connectivity, and the skilled jobs it implies, is maintained.” The St Austell and Newquay MP, Steve Double, said it was “very concerning news”. “Flybe is essential to Cornwall and many regional airports,” he said. The Exeter MP, Ben Bradshaw, called on the government to help Flybe obtain the financial help it needs to keep running. He told Devon Live: “The priority must be to secure Flybe’s long-term future by restoring profitability. The airline provides valuable connectivity throughout the UK, vital for the regions, including our own, as well as good, skilled jobs and training locally.” Local environmental groups argued that staff at Flybe should be supported into into new jobs in sustainable transport. Exeter Greens said: “Faced with a climate emergency, and flying principally domestic routes, [Flybe] is an environmentally and financially unsustainable business.” Link to comment Share on other sites More sharing options...
Guest Posted March 4, 2020 Share Posted March 4, 2020 Flybe: Coronavirus pushes airline to brink of collapse By Simon JackBusiness editor 3 hours ago 334comments Share this with Facebook Share this with Messenger Share this with Twitter Share this with Email Share Related Topics Image copyrightGETTY IMAGES Struggling airline Flybe is facing fresh doubts over its future amid uncertainty about a rescue loan and the impact of coronavirus on its bookings. Flybe is looking to the government to commit to helping the airline in the next few days if it is to survive. But a £100m government loan to help stabilise the business is now unlikely to happen, the BBC understands. The coronavirus impact on travel "has made a bad situation much worse," insiders told the BBC. According to the FT, which first reported the news, the airline believes it has enough financial resources to survive "until the end of this month". Flybe has been in discussions with the government about a loan of up to £100m to help it bridge the period between the lean months of winter - when airlines typically lose money - to the richer pickings in summer. The government also agreed to consider a cut to airline passenger duty (APD). Currently, this £13 per person tax on short haul flying is levied per passenger leaving UK airports. That means that domestic routes pay the tax twice and Flybe has been pushing for the tax to be halved on internal UK flights. Neither of these options now seem likely. Government considers ownership stake in Flybe The BBC understands that changes to the Air Passenger Duty regime are constrained by the fact that the UK is still bound by EU single market rules until the end of the transition period at the end of this year. If changes to APD can't take effect before then, the government is reluctant to extend any kind of loan to an airline likely to continue to be loss making for the next nine months. As one source put it "the government has always been worried it would be throwing good money after bad - and those worries have only intensified. the direction of travel on these issues has been apparent to the government and the company for weeks. The only thing that has changed is coronavirus." Those worries have been amplified by the outrage of rival airlines that Flybe should be the recipient of tax payer money given the airline is owned by deep pocketed owners Virgin Atlantic, logistics company Stobart and multi-billion dollar US hedge fund Cyrus Capital. It is thought the owners have injected enough money to keep the airline aloft until the end of March but if the mood music coming from government is right, this airline's troubled journey may soon terminate. Flybe serves around 170 destinations and has a major presence at UK airports such as Aberdeen, Belfast City, Manchester and Southampton. It flies the most UK domestic routes between airports outside London. Rival Ryanair has predicted the drop in demand for flights due to the coronavirus will result in some European airlines failing in the coming weeks. In January, news that Flybe may benefit from government help, sparked a backlash from rivals. British Airways' owner IAG has filed a complaint to the EU arguing Flybe's rescue breaches state aid rules. While, EasyJet and Ryanair said taxpayer funds should not be used to save a rival. The government's proposal to cut Air Passenger Duty (APD), was also attacked by the rail industry's trade body and climate campaign groups. Neither Flybe nor the Department for Transport would comment on the speculation Link to comment Share on other sites More sharing options...
moeman Posted March 5, 2020 Share Posted March 5, 2020 https://ukaviation.news/flybe-regional-airline-collapses-leaving-thousands-out-of-a-job/ Struggling regional airline Flybe (BE/BEE) has entered administration tonight after failing to reach a rescue deal with its shareholders or the UK Government. In an email to staff CEO Mark Anderson said: “Its with enormous sadness and a deep feeling of sorrow that I share the upsetting news that Flybe is shortly to be put into administration.” The email goes on to say that they expect Ernst & Young (E&Y) to be appointed as administrators. Mr Anderson also says that the Shareholders have worked with the UK Government and Key Suppliers to get the funding and support needed but it hasn’t materialised and the Coronavirus outbreak has put additional pressure on an already bad situation. Flybe Franchise partner Blue Islands Airways had already announced that Flybe had closed and travel agency Tailor Made Travel also said that the airline had ceased trading at 23:00hrs on the 4th March 2020. The last few flights left Manchester Airport for Belfast, Edinburgh and Aberdeen. Shortly after those flights landed the Flybe website and also the Connect Airways Ltd website were taken offline. Loss-making Flybe has been struggling for several years but was recently bought out by a consortium led by Virgin Atlantic and Stobart Group. Despite the buy-out, the airline recently approached the UK Government for help to stay afloat as it ran low on cash and was given an opportunity to delay paying its Air Passenger Duty Bill. The airline then asked for a £100m loan but it is understood that government has now rejected the idea and combined with falling bookings related to the Coronavirus outbreak, the airline was no longer viable and entered administration. The collapse leaves 2000 people without jobs including Pilots, Cabin Crew, Engineers and Admin staff as well as thousands of passengers have to look for alternative flights home. Flybe at Cardiff Airport (The Aviation Media Agency) The collapse is also disastrous for several key regional airports including Southampton, Exeter and Cardiff where Flybe forms the majority of flights from them. Eastern Airways and Blue Islands Airways also operate as Flybe Franchisees with all tickets booked via Flybe. Blue Islands Airways has already said that it will revert back to its own booking system and charge a flat fare of £50 until then. Eastern Airways has said that its flights will operate as normal. One source close to the airline has suggested that it was Virgin Atlantic that has decided that “enough is enough” with Flybe. What help can I get if I am due to fly with Flybe? Basically none. Unlike when Thomas Cook and Monarch collapsed Flybe flights aren’t covered by ATOL protection so if you abroad and due to fly back to the UK then you will need to make your own arrangements for an alternative flight or claim on your travel insurance. If you are due to fly then you can submit a claim to the administrators, unless you paid via Credit Card in which case you can ask your Credit Card company to reimburse you. The Civil Aviation Authority (CAA) has no obligation to repatriate Flybe Passengers. Link to comment Share on other sites More sharing options...
Guest Posted March 5, 2020 Share Posted March 5, 2020 Collapsed Flybe tells passengers not to travel to airports 55 minutes ago Share this with Facebook Share this with Messenger Share this with Twitter Share this with Email Share Related TopicsGETTY IMAGES UK airline Flybe has gone into administration, putting 2,000 jobs at risk, after a bid for fresh financial support failed. The Exeter-based carrier said the impact of the coronavirus outbreak on demand for air travel was partly to blame for its collapse. Its website now advises customers to "not travel to the airport" unless they have arranged an alternative flight. Flybe boss Mark Anderson said he was "very sorry" for the firm's collapse. In a letter to the airline's staff, chief executive Mark Anderson said: "Despite every effort, we now have no alternative - having failed to find a feasible solution to allow us to keep trading." In response to the collapse, the UK government said it was ready to help Flybe's workers find new jobs and would work with other airlines to replace services: "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-established by the industry. " Five things that went wrong for Flybe Why Flybe matters 'I thought we would be saved but not this time' Flybe collapse: Your rights explained Transport Secretary Grant Shapps said everyone was "gutted" about the news but added: "We really tried to do everything we ould back at the turn o the year. Ads by Teads "Unfortunately, with the situation that has developed with [coronavirus], an already weak company, I'm afraid, just hasn't been able to survive." How have passengers reacted? David Manners arrived at Exeter Airport this morning to find his Flybe flight to Paris had been cancelled. The trip had been planned as a surprise Christmas present for his wife and he said they were "absolutely gutted". Mr Manners, who lives in Lyme Regis, said Flybe's collapse would also be bad for the area. "We use this airport quite a lot because it's so convenient," he said. "We know some of the staff very well… I feel for them." Jessica, Abby and Robyn work for a recruitment agency and were due to return to Jersey via Exeter Airport after a business trip. They described the airport as a "ghost town" on arrival. Abby said: "I use Flybe maybe once a month, and not having it now will be such a nightmare." The group said that other airlines such as EasyJet or British Airways did operate flights from Jersey, but they typically only flew into larger airports such as London Gatwick. Ryanair has launched "rescue" fares for March and April on five routes following Flybe's collapse. They include flights between Bournemouth and Dublin, Belfast and Stansted and Belfast and Manchester. Train operators across Britain are also providing free travel to customers and Flybe staff who are unable to travel over the next week, according to the Rail Delivery Group. What are your rights as a passenger? Flybe customers who bought tickets directly from the company will not be protected by Atol, the travel industry insurance fund However, if you bought through a travel agent or other third party you might be covered. Some people might be able to get their money back if they paid by credit card or with some debit cards. What does it mean for staff? Thousands of jobs are at risk following the regional airline's collapse. Katherine Densham, a Flybe cabin crew member, had been due to fly to London City Airport from Exeter on Thursday. She has worked for the airline for 13 years after joining the firm straight from college. Media caption'We're not sure what we're going to do now' She told the BBC that staff were feeling "really sad" and that she was not sure what to do next. Balpa, the pilots' union, said that pilots, cabin crew and ground staff "have done their jobs brilliantly" throughout its struggle. The union questioned how staff "are going to find new jobs in the current climate", although companies such as South Western Railway have already been calling out for job applications from Flybe staff on social media. What went wrong at the airline? Flybe ran into difficulties last year and was bought by a consortium that includes Virgin Atlantic. But its troubles persisted, and it narrowly avoided going bust in January this year. The new owners said they would pump £30m into the business to keep it afloat, but appealed to the government for additional support.Image copyrightPA MEDIA Flybe, which served destinations from the Channel Islands to Aberdeen, had also been hoping for a £100m lifeline from the government and changes to Air Passenger Duty taxes. But the news that it may benefit from government help sparked a backlash from its rivals. British Airways-owner IAG filed a complaint to the EU arguing Flybe's rescue breached state aid rules. Virgin Atlantic said it was "deeply disappointed" that Flybe had gone bust, adding that the consortium had invested more than £135m in keeping the airline flying for an extra year. While its financial problems were already apparent, a Flybe insider told the BBC the impact of the coronavirus on the travel industry had "made a bad situation much worse". Air transport expert John Strickland added that the regional market was extremely challenging for any airline, but that Flybe had made matters worse some years ago through over-ambitious expansion. "It's really too big for what it's trying to do," he said. What does Flybe's collapse mean for the regions? Although Flybe is small compared to the likes of British Airways, Ryanair or EasyJet, the loss of the operator has been described as "disastrous" for UK regions. Mr Strickland said Flybe is "small in the scale of the UK market as a whole, but if you're flying out of Exeter, Newquay or specifically Southampton it really is one of the only airline choices... so a number of regional groups will risk not being served". Following last December's general election, Prime Minister Boris Johnson pledged to "level up" the UK's regions, after the Conservatives won seats in previous Labour strongholds. He appeared ready to intervene to prop up the airline, considered a key transport link to many parts of the country. Flybe collapse affects Isle of Man hospital patients Cardiff Flybe passengers warned not to go to airport Shadow transport secretary Andy Macdonald said the airline had provided "critical connectivity for many locations" and its collapse would be "disastrous news for passengers and employees alike." "The government has to answer how those vital links will be maintained following Flybe's collapse. Communities will be concerned about what this will mean for their local economies and the Secretary of State has to come up with answers to these questions as a matter of urgency," he said. Tim Jeans, chairman of Cornwall Airport, said that he "very much hoped" that other airlines would take up the routes. He said discussions with other airlines would "begin in earnest" soon and he hoped to reinstate services "on those routes hopefully within weeks rather than months". Link to comment Share on other sites More sharing options...
dagger Posted March 5, 2020 Share Posted March 5, 2020 HALIFAX, March 5, 2020 /CNW/ - Earlier today, Flybe Limited ('Flybe') ceased operating and was placed in administration. Chorus had three ATR 72-600 and five Dash 8-400 aircraft on lease with Flybe. These aircraft account for less than 5.0% of the net book value of Chorus' regional aircraft leasing segment fleet and less than 5.0% of Chorus' consolidated annualized 2019 EBITDA. Chorus holds security in respect of these aircraft and has a plan to manage their repossession and remarketing. Furthermore, Chorus' loan agreements provide time and flexibility to remarket the aircraft. "We have planned for this contingency and are executing against our plan," stated Steven Ridolfi, President, Chorus Aviation Capital. "We are currently in negotiations with prospects for these aircraft. As noted, these aircraft represent only a small portion of the value of our leased aircraft portfolio." Link to comment Share on other sites More sharing options...
Kasey Posted March 5, 2020 Share Posted March 5, 2020 Picking up the pieces............ https://www.bbc.com/news/uk-scotland-51752375?intlink_from_url=https://www.bbc.com/news/uk&link_location=live-reporting-story Link to comment Share on other sites More sharing options...
Fido Posted March 5, 2020 Share Posted March 5, 2020 Perhaps that is why a friend of mine spent so little time there a year ago. The writing must have been on the wall. Link to comment Share on other sites More sharing options...
rudder Posted March 6, 2020 Share Posted March 6, 2020 3 hours ago, Fido said: The writing must have been on the wall. Perhaps not so obvious for some. Chorus Aviation Capital had 8 aircraft on lease to Flybe. Link to comment Share on other sites More sharing options...
Jaydee Posted March 6, 2020 Share Posted March 6, 2020 20 hours ago, Fido said: The writing must have been on the wall. Speaking of writing on the wall..... Link to comment Share on other sites More sharing options...
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