Flybe was still flying on Monday, but reports said it was close to running out of cash. Sky News reported that the regional carrier was on the brink of collapse because of mounting losses, and that the financing demands from its owners had become heavier.
The reports said Flybe was asking the UK government for emergency money. According to Sky News, the Department for Transport was weighing up whether any such help could be given. The department would not discuss it. “We do not comment on speculation or the financial affairs of private companies,” a spokesman said.
Flybe took the same line. It does not comment on “rumour or speculation”, the airline said, adding that flights were running and passengers could travel as planned.
Who owns it
Last year Flybe was bought by Connect Airways, a consortium put together by Virgin Atlantic, Stobart Group and the investment adviser Cyrus Capital. Stobart, which belongs to the Connect group, flies routes from Southend airport to the Isle of Man and to France for Flybe. It did not comment on Monday.
Irish routes at stake
The news was felt quickly in Ireland, where the Irish Times said fears were growing for some flights to Britain. Flybe serves regional airports in England, Scotland and Wales from Belfast City, Cork, Dublin and Knock.
Belfast City stands to lose most. Flybe runs 14 services from there, to London, Edinburgh, Cardiff, Manchester, Glasgow and other regional centres. At Knock, in Co Mayo, it flies to Birmingham, East Midlands and Manchester. From Dublin it offers Cardiff, Exeter and Southampton, and from Cork it serves Cardiff.
A failure would be the second big blow to the British airline and travel business in under six months. Thomas Cook, the travel agent and airline, went into liquidation last September and left thousands of holidaymakers stranded.
European airlines in general are dealing with falling fares, rising costs and tougher competition.
