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Flybe in frantic bid to stave off collapse

Flybe in frantic bid to stave off collapse

Government support offer to Flybe which could continue flights in and out of Spain

As Reported in the EuroWeeklyNews 

Flybe one of the favourite choices of fliers in and out of Spain for expats could be saved this morning from administration.

This morning Andrea Leadsom and Grant Shapps will meet Mr Javid the chancellor to discuss the proposed terms of a bailout of the airline.

Although the government wants to see fresh investment of tens of millions of pounds from the airline which includes Virgin Atlantic and the Stobart Group.

In return the government will defer a tax payment due of around 110 million GBP of Air passenger tax for 3 years, this will allow the airline time to get through the slower winter months and restructure as planned for the more profitable summer months ahead.

The provisional backing of Ms Leadsom and Mr Shapps for support to a rescue package suggests that the threat of administration and probable insolvency could be over if a deal can be agreed on investment from the shareholders.

This will be good news for expats living in Spain especially as the airline carries travellers to more regional airports in the UK such as Exeter and Southampton, whilst preventing price hikes from other carriers due to less competition.

Flybe Airline On The Brink Of Administration With Regular Routes to Spain At Risk

13th January – The government is assessing whether it can help to prevent the collapse of one of the UK’s biggest airlines.

As Reported in the EuroWeeklyNews

The company was locked into survival talks late into the night of yesterday and are continuing into the early hours of today.

The company was locked into survival talks late into the night of yesterday and are continuing into the early hours of today.

Flybe still has mounting losses despite controlling half of the UK’s regional flight routes and many European destinations including flights to Spain’s Malaga and Costa Blanca airports.

According to aviation sources the accountancy company EY has been placed on standby for entering administration of the Flybe group.

The department of transport have been briefed on the situation with the government in Britain looking at a possible bail out deal as at least 2,000 jobs at risk, the DOT are working with Department for Business, Energy and Industrial Strategy to see if a finance rescue package can be put together.

This though could potentially cause its own outcry as the government decided not bail out Thomas Cook in 2019.

If Flybe is unable to put together a rescue deal shortly it will be the second major airline collapse in four months after Thomas Cook crashed September 2019.

The low cost airline based in Norwich has 75 aircraft in its fleet and operates from over 80 European airports including Spain.

I have a ticket for a future flight on Flybe. What can I do?

At this stage, nothing more than assume it will go ahead. Flybe says: “We don’t comment on rumour or speculation.”

But all of Flybe’s operations are going ahead as normal

Read all the latest news stories HERE

 

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