Administrators said the late delivery of 17 aircraft was one of the key factors behind the collapse of airline Flybe. The company, which was launched from the ashes of its predecessor of the same name in 2021, was placed into administration on Saturday morning.
It commenced flights in April last year and employed 321 staff, operating 21 routes to 17 destinations across the UK and EU at the time of the administration. It opened a new headquarters at Birmingham Airport in November 2021 where a large proportion of its airline and back office staff were based, along with 138 employees at Belfast Airport and the remainder in Exeter and other locations.
All of its flights both to and from the UK have now been cancelled, leaving passengers either without a service or stuck elsewhere and having to book alternative flights to make their way home.
David Pike and Mike Pink from Interpath Advisory were appointed administrators and are now winding down the business although they are still seeking new investors in the hope of securing a rescue deal. Mr Pike said the late delivery of 17 aircraft "severely compromised" Flybe's operations.
"The new Flybe was received warmly by the industry and public alike when it launched so this will be devastating news for all those who have supported the company since," said Mr Pike.
"I particularly feel for the employees who have put so much energy into making Flybe a success since its relaunch. I also know that there will be customers who rely on Flybe's services, including the extremely important Belfast connectivity which it provides.
"In this regard, this is a real setback in terms of the UK's regional connectivity at a time when infrastructure and levelling up is high on the agenda.
"Unfortunately, the company had to withstand a number of shocks since its relaunch, not least of which was the late delivery of 17 aircraft which it needed for its schedule and which has severely compromised both the airline's capacity and its ability to remain competitive. This has driven significant financial losses and an associated cash drain for the business."
Mr Pike added that enormous effort had been made in recent months by the directors and stakeholders to safeguard the future of the business including a hunt for new investors but these had ultimately failed.
Elements of the company's operating platform will be retained in the hope that a rescue deal can be reached.
The "new" version of Flybe was born out of the old firm which was based at Exeter Airport and was once Europe's largest regional carrier, flying around eight million passengers a year and employing 2,500 staff.
It was owned by global private equity house Cyrus Capital, alongside Virgin Atlantic and Stobart Group, but collapsed into administration in March 2020 shortly before the world was plunged into a global lockdown because of the coronavirus pandemic.
The brand, intellectual property, stock and equipment of the old business was later bought for a nominal fee from administrators by Cyrus Capital.
The revamped Flybe was one of the first new UK airlines to be certified by the Civil Aviation Authority since Brexit and had plans to create 400 jobs across the country in the three years following its launch.
When announcing details of its new HQ at Birmingham Airport, chief executive David Pflieger said the site offered "a real partnership" to the firm but warned it would start slowly as it looked to rebuild from the ashes of the defunct former operator.
