British regional carrier Flybe will remain shuttered permanently after a “challenging set of circumstances” prevented a sale of the insolvent airline.
Bye, Bye, Flybe
In January, Flybe entered into administration for the second time within three years, raising questions as to the future of the Midlands-based regional airline. Major European carriers Lufthansa and Air France-KLM were reported to have begun talks to acquire Flybe and its lucrative landing slots at London Heathrow (LHW) and Amsterdam Schiphol (AMS), though a deal did not surface.
Despite a glimmer of hope last week after administrators Interpath Advisory applied for a temporary air operators certificate (AOC), Interpath has confirmed that it has now ended discussions on a potential sale and begun winding down the business.
David Pike, managing director of Interpath, explained in a statement published Wednesday that he and joint administrator Mike Pink had held intensive talks with a range of airlines in a move to rescue Flybe; however, setbacks had prevented the sale of the carrier within the limited time frame.
Pike commented,
“Unfortunately, there was a challenging set of circumstances at play, including the ‘use-it-or-lose-it’ rules related to slots, complexities with European recognition of a potential Temporary Operating Licence and the high costs associated with preserving the Company’s operating platform, which meant there was a limited window in which a clear path forward could be set."
“However, it is with regret that discussions have now been brought to a close without a deal being agreed."
The winding down process will see Interpath sell off the carrier’s rights, interests, and assets and return Flybe’s De Havilland Canada DHC-8-400 turboprop fleet to lessors Nordic Aviation Capital and Aergo Capital. Flybe’s twenty-five remaining employees have been made redundant, though Pike added that operators and organizations from across the aviation industry had reached out to offer support for finding new roles for affected staff members.
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What’s next?
On Tuesday, Scottish regional competitor Loganair became the first airline to apply for Flybe’s London Heathrow slots, ch-aviation reports. In a statement, CEO Jonathan Hinkles noted that the carrier had no interest in acquiring any other Flybe assets, but he believed the slots should be allocated based on protecting connectivity across the United Kingdom instead of given to the highest bidder.
Just under 300 flights were set to be operated by Flybe for the week beginning January 30, totaling 4% of the UK’s total domestic capacity, according to analysis by Routes. At the time of insolvency, Flybe operated fights to 17 short-haul destinations across the UK and Europe. Much of the British regional aviation industry appears to be recovering from the original Flybe collapse in 2020, which operated almost 40% of domestic departures in the UK ahead of easyJet and flag carrier British Airways.
Five routes, primarily connecting East Midlands (EMA), Belfast City (BHD), and Cornwall Newquay (NQY), have lost capacity entirely. Plans are in place with Loganair, easyJet, and Ryanair to provide coverage or nearby alternatives through 2023.
What are your thoughts on Flybe’s permanent closure? Were your flights affected in January? Let us know in the comments.
Sources: ch-aviation, Routes