Flybe grounded after talks with potential buyers fail
Regional airline Flybe is to be wound up after administrators admitted defeat in their bid to find a buyer for the stricken firm.
The company entered administration on 28 January after struggling since its relaunch. At the time, administrators David Pike and Mike Pink from Interpath Advisory revealed that 276 Flybe employees had been made redundant. All of the airline’s scheduled flights were cancelled.
Flybe operated passenger flights via 21 routes to 17 destinations across the UK and EU, including Newquay, Belfast City, Birmingham, East Midlands, Glasgow, Heathrow and Leeds Bradford airports.
Some of the company’s employees worked remotely and in Belfast and Exeter, but the majority of staff were based in Birmingham.
In total, 133 people were made redundant in Birmingham, with 99 from the airport and 34 from its Birmingham headquarters.
The administrators have now revealed that a further 25 employees have lost their jobs after “complexities” grounded a potential sale.
A statement from the joint administrators reads: “Despite significant interest from a number of credible parties, it has not been possible to develop a transaction in the available timeframe and as such, the joint administrators will now commence the process of winding-down the business and identifying options in relation to the sale of specific rights, interests and assets.
“As a result, a further 25 employees have been made redundant with immediate effect.”
Pike, managing director at Interpath, said; “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.
“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.
“However, it is with regret that discussions have now been brought to a close without a deal being agreed.
“We’d like to thank a number of stakeholders, including the CAA and the Company’s lessors, who gave us the time and support we needed to ensure we were able to explore every available avenue to rescue the business. We’d also like to thank those employees who have been working closely with us since our appointment, and who have worked with diligence and professionalism in this unsettling period.”
Pike added: “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.”
