FLYBE AIRLINES WAS BANKRUPTED BY CORONAVIRUS

Less than two months passed since the government of the United Kingdom literally saved the company, but this salvation turned out to be temporary. Due to the decline in customer activity and to the inability to sufficiently load the aircrafts with passengers and cargo, the airline filed for bankruptcy.

“Flybe’s” Executive Director Mark Anderson said that the company did everything possible to avoid bankruptcy, but could not overcome financial problems. The Great Britain, in his opinion, has lost one of the best regional assets.

The experts name the main reasons for bankruptcy. They are rise in fuel prices, currency volatility and a lack of certainty in the air transportation market.

On March 5, it was announced that all flights were canceled, and the aircraft stopped flying due to the bankruptcy procedure. More than 2,400 employees were unemployed. Tens of thousands of people stayed at airports in the UK and European countries as the quick return will now be extremely problematic. The Civil Aviation Authority has confirmed that there is no plan to return people at the state’s expense. This situation is similar to what happened after the bankruptcy of “Monarch Airlines” or “Thomas Cook”. The only thing passengers can count on is discounts from other airline, auto and railway companies, that were asked to accept the victims of the “Flybe” bankrupt.

The collapse of “Flybe”, carrying 9.5 million passengers to 81 airports across Europe and the United Kingdom annually, was a major blow to those, who are living in sparsely populated areas. It is necessary to note that the airline operated about 40% of domestic flights in the UK. In January last year, the company was able to avoid collapse by reaching an agreement between the government and the shareholders (including the “Virgin Atlantic” and “Stobart Group”), but now this has not happened. In a published statement, “Flybe’s” representatives asked the passengers not to go to airports until they are able to buy tickets for alternative flights from other carriers.

“Flybe” Airlines company, which included a fleet of 63 aircraft, was founded in 1979 as “Jersey European Airways”. It has been working with many airports in the United Kingdom, including airfields in Northern Ireland and Scotland. The British government indicated that it was ready to help employees, who were left without work, to get new jobs. It was planned to begin negotiations with other airlines.

It is also necessary to find those who will replace “Flybe” airlines  in the segment of the empty regional transportation market. We should note that many airlines are forced to cancel hundreds of flights due to the falling demand in the UK - this is due to the coronavirus epidemic, as there are at least 100 infected in the United Kingdom.