UK’s domestic airline Flybe goes bankrupt
Flybe has ceased all operations and has gone bankrupt. The airline’s more than 2,000 staff now face uncertainty with all flights from Thursday 5th Mar and onwards – cancelled.
In a last-ditch attempt, the airline attempted to secure emergency funding of £100 million loan from the UK’s government but was rejected.
The accounting firm Ernst & Young had been monitoring the airline’s deteriorating financial situation for several months.
Flybe’s bankruptcy follows the collapse of Thomas Cook in 2019, which resulted in the greatest peacetime repatriation effort since WWII. So while Flybe has a fleet of 67 aircraft, it operated UK domestic routes, and the repatriation effort will be much easier and cheaper than that of Thomas Cook.
Flybe has a 40% share of the UK’s domestic flight market. However, they struggled to compete with road and rail-based means of transportation. The reduced demand for airline travel due to the coronavirus made the situation even worse for Flybe.
What to do if my flight is affected?
If you have an upcoming Flybe flight and bought your ticket by debit card, then contact your bank and ask about a chargeback for the cancelled flight.
If you didn’t buy your ticket by debit card, then check your travel insurance. If your policy covers the insolvency of an airline, you should be covered.
If you booked a holiday package with Flybe or through a travel agency, then your holiday may be ATOL protected and will get a refund by the ATOL fund.