UK airline Flybe has gone into administration after failing to raise additional funding. More than 2,000 staff have lost their jobs.
Last year Flybe was purchased by Connect Airways, a consortium that included Virgin Atlantic, but had struggled with mounting debts and losses. In 2020 the government proposed a £100 million rescue loan and deferral of the company’s tax bill, though rival airlines argued this contravened state aid rules.
Flybe was Europe’s largest regional airline, accounting for 40% of domestic UK flights. Operating domestically, it was disproportionately hit by Air Passenger Duty (APD), a per-passenger tax on all flights taking off in the UK. The government had proposed a review of the tax, but was still bound by EU rules.
Flybe also struggled with overcapacity, in a highly competitive market where companies operate by tight margins.
While primarily a passenger airline, like most other airlines Flybe also transported commercial cargo.
Source: BBC News
Header image: Max Andrey