EMCC European Monitoring Centre on Change

Flybe

Company/Organisation:
Flybe

Geographic Location

Country: United Kingdom

Company

Sector: Transportation / storage
Transportation and storage
51.10 - Passenger air transport
Number Employed: 2400
Group: Connect Airways

Employment Effects

Announcement Date: 05-03-2020
Planned Job Reductions min: 2000
Planned Job Reductions max: 2000
Type of Restructuring: Bankruptcy
Employment Effect Start: 05-03-2020
Direct Dismissals: 2000

Additional Information

Flybe, the UK-based airline, entered administration on 5 March, putting more than 2,000 jobs at risk of redundancy. Staff employed at regional airports, such as Southampton and Exeter and Belfast, which are served primarily by Flybe, are also likely to be affected.

Flybe’s chief executive said that they had been unable to overcome funding challenges and that the coronavirus outbreak has added further pressure on the company. The airline was taken over in 2019 by Connect Airways – a consortium of Virgin Atlantic, Stobart Air and the hedge fund Cyrus Capital but continued to operate at a loss.

The administrators at EY also said in their statement that the coronavirus outbreak had deepened Flybe’s financial problems.

Representatives of Unite the Union and the British Airline Pilots’ Association referred to the responsibility of the government in not supporting Flybe amid the uncertainties caused by Brexit and the coronavirus.

Flybe was founded over 40 years ago and it is Europe’s largest regional airline. It is the third major British airline to have gone bankrupt in recent years, after Monarch and Thomas Cook. 

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