Troubled airline Flybe in survival funding talks

Flybe, Europe’s biggest regional airline with a sizeable operation at Manchester Airport, is said to be at the point of collapse with bosses locked in survival talks in a bid to avoid administration that would put 2,000 jobs at risk.

According to Sky News, the airline has found itself at risk once again less than a year after its rescue by a Virgin Atlantic-led consortium of buyers.

In February last year Flybe completed the sale of its assets to a consortium of buyers which included Cumbrian-based logistics firm Stobart Group.

Flybe confirmed it had sold its assets and operations for £2.8m to Connect Airways.

The consortium comprised Virgin Atlantic, Stobart Group and hedge fund Cyrus Capital.

The airline, which handles half of Britain’s domestic flights outside London, has been trying to secure additional financing amid mounting losses.

EY is understood to be on standby to handle an administration of Flybe Group.

Flybe operates about 75 aircraft and serves more than 80 airports across the UK and Europe.

Its services include routes to the Isle of Man and Newquay from Liverpool John Lennon Airport.

On Twitter last night, Flybe said: “Flybe continues to provide great service and connectivity for our customers while ensuring they can continue to travel as planned. We don’t comment on rumour or speculation.”

In October, the airline officially changed its name to Virgin Connect following its £2.8m sale.