Flybe will be wound down and its remaining 25 employees made redundant (Ben Birchall/PA)
(Picture: PA Wire)Flybe will be wound down and its remaining 25 employees made redundant after administrators said the “complexities” of a sale prevented them from finding a way to save the ailing carrier.
Administrators David Pike and Mike Pink from Interpath Advisory said that there was “significant interest from a number of credible parties”, but it was not possible to get a deal over the line “in the available timeframe”.
As a result, the administrators will now attempt to sell specific rights, interests and assets that belonged to Flybe.
Pike said issues such as airport slot rules and licensing scuppered any potential rescue deals.
“Over the past two and a half weeks, we’ve held intensive discussions with a number of operators with a view to rescuing the airline and preserving the value in its assets,” he said.
“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.
“Furthermore, it was clear from the outset that there was only a limited number of parties who had the necessary strategic fit and who could navigate the complexities of such a transaction to get a deal over the line. We thank those parties for their engagement.”
Pike added that the administrators will provide support to the 25 employees who have been made redundant, in order to help them find work again.
“Over the coming days, we will continue to work with the lessors to return the aircraft records to them, and will also continue to provide support to those employees who have been impacted by redundancy. We are particularly grateful to those operators and other organisations across the aviation industry who have reached out to us directly to offer support in finding new roles for employees.”
Flybe entered administration for the second time last month, only nine months after returning to the skies following an initial collapse in 2020.
Flybe was first pushed into administration in March 2020 with the loss of 2,400 jobs as the Covid-19 pandemic destroyed large parts of the travel market.
Its business and assets were purchased in April 2021 by Thyme Opco, which is linked to US hedge fund Cyrus Capital. Thyme Opco had a plan to operate up to 530 flights per week over 23 routes, serving airports including Heathrow, Belfast City, Birmingham, East Midlands, Glasgow and Leeds Bradford.
