Flybe enters administration – what happens next?

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Flybe has finally collapsed tonight, after the Government refused additional requests for emergency funding.

The website went down around 10.45pm:

Here is the official notice issued at Glasgow Airport, impounding one of their aircraft for non-payment of fees (click to enlarge):

The last aircraft to land was due to be BE7308 from Hannover to Manchester at around 10.30pm.

If you saw my BBC TV interview on Tuesday, you will know that I mentioned Flybe when asked about airlines which I thought may collapse. I felt a bit guilty about saying this, since I know many of the senior team there, but it was not exactly the sort of guess which required an industry expert.

The Financial Times had reported earlier that the Government had rejected the original request by the airline for a £100 million loan. Whilst it was possible that Flybe would have benefited from changes to Air Passenger Duty in the budget next week, this may have been too little too late. Any changes would have taken time to implement, and there is even talk of the budget being postponed in full as coronavirus is making financial planning difficult for the Government.

By the time you read this we will probably have the full picture. The airline does not night-stop any aircraft, I believe, so all of the assets should have been back on UK soil late tonight unless any were impounded abroad.

This is not necessarily the end:

Will Virgin Atlantic buy the airline from the administrators? (Difficult, given that it would have to resume trading at a time when no-one is booking.)

What will happen to the regional airports which are dependent on Flybe to keep operating? Look at this list (some of these are franchised Flybe flights which will continue):

Anglesey – 100% Flybe

Southampton – 95% Flybe

Belfast City – 80% Flybe

Exeter – 78% Flybe

Newquay – 66% Flybe

Wick – 59% Flybe

Jersey – 57% Flybe

Cardiff – 52% Flybe

Guernsey – 50% Flybe

Isle of Man – 49% Flybe

Does British Airways get back the ex-bmi Heathrow slots which it was forced to divest to Virgin Little Red and then Flybe?

Who will pick up the two routes which are operated under public subsidy?

Are the Stobart assets ring-fenced from the administration – and if not, what happens to the flights that Stobart runs under contract for Aer Lingus?

And who will fill the Hampton by Hilton Exeter Airport every night, which was only built after Flybe guaranteed to provide most of the guests via people who were at its training academy next door?!

There is, somewhere inside Flybe, a small and profitable regional airline which is not weighed down the financial and physical baggage of a history of failed expansion.

Whether Virgin Atlantic is the one to put this back together remains to be seen, but I would imagine that the profitable routes are not the ones which would provide Virgin with feed.

For the rest of the airline industry, there is no good news here. The biggest winners from Flybe’s collapse, if the pieces are not picked up, will be the train companies and petrol stations. In the meantime, the public will become even more paranoid about booking flight tickets. If Norwegian follows in the next couple of weeks then there really will be a crisis of confidence.

EDIT: We have now added a new article covering the announcements from Loganair, Eastern and Blue Islands as they pick up ex-Flybe routes.

Category

General

This article is closed to new comments. Feel free to ask your question in the HfP forums.

Eli gold says:

5 Mar5 March 09:42

Thanks to Corona virus Brexit has been let off the hook.
Till not long ago Brexit was the default excuse for any poorly managed company folding
Doug M says:

5 Mar5 March 09:57

Given Virgin only acquired 30% they either already had money issues, or were never that committed to it anyway.
Guy G says:

5 Mar5 March 10:39

OT & @ Rob

Just received an email from Virgin regarding removal of FX fees on their credit cards in the EEA. Was there a mention or article anywhere?

Thanks
- Rob says:
  
  5 Mar5 March 11:28
  
  No, because I am not convinced it is permanent. Tellingly Virgin has not changed their marketing material. This is an EU ruling, but other card companies have dealt with it by renaming their fee.
  - Yorkieflyer says:
    
    5 Mar5 March 22:20
    
    I disagree having see the email from VS money which trumpets it as good news so can’t see it being removed imminently
    - Rob says:
      
      5 Mar5 March 22:45
      
      When it is on the application website, we’ll push it.
      
      Remember that VS pay us for selling cards, so if this is permanent I’m happy to shout about it.
Frank says:

5 Mar5 March 10:53

I have a flybe marketed ticket but Air france operated flights…BHX-CDG wondered if AF will still honour the ticket? thanks
- David D says:
  
  5 Mar5 March 12:39
  
  As it is Flybe marketed, the chances of your booking going ahead is minimal. You should speak to the cars provider you made your booking with to receive a Section 75 refund if a debit card or a charge back if a credit card. If you have insurance with scheduled airline failure in the policy you can contact them as well.
  - Lady London says:
    
    5 Mar5 March 19:25
    
    Other way round @David
    s75 << credit and min £100 (best option as it comes from law)
    chargeback depends if your financial institution offers it (comes from a practice in finance industry. Most seem to but a few exceptions.
- Bob says:
  
  5 Mar5 March 18:23
  
  1. On my BHX-CDG flight operated by flybe in 2015, there were a lot of AF 057 ticket stock customers, getting a free drink from the BOB.
  AF may be aware of the flybe case from sometimes now and then maybe withold some money it have to give to flybe, and recoup it with what flybe has to paid to AF.
  
  2. AF is friend with flybe since the 90’s when it was jersey european.
  
  So maybe you’ll have some luck and your flybe ticket will be honored by AF.
Jamie says:

5 Mar5 March 11:07

Got norwegian flights mid-April booked with Amex. Amex would pay for new flights if they go under right?

Rob, how likely is it Norwegian go under?
- insider says:
  
  5 Mar5 March 12:06
  
  well they’ve been about to go under for many years now…but i reckon this might be the final nail in the coffin
  - Lady London says:
    
    5 Mar5 March 19:30
    
    It would be a great shame. Can you imagine what airlines that have had to offer decent prices because Norwegian is there, will do in future once things settle down, if Norweg disappears? This is not a good thing and I include our own dear BA and SK who will take full advantage.
    - Colin MacKinnon says:
      
      5 Mar5 March 19:59
      
      BA flights in CW from London to Denver were never really impacted by Norwegian from LGW to DEN.
      
      Maybe in economy, but who flies that!
- Alex Sm says:
  
  6 Mar6 March 00:03
  
  +1 to the question
Zara says:

5 Mar5 March 11:40

OT: am sure this has been discussed many many times but as I only purchased the initial points near the end of December, my 8 weeks have just passed and amex are not budging. Are there any success stories and how did you get them across the line? Thanks in advance.
- Zara says:
  
  5 Mar5 March 11:46
  
  Re Bonvoy!
  - David says:
    
    5 Mar5 March 12:39
    
    I believe people have reported success even if not targeted by raising with Bonvoy directly.
    - Zara says:
      
      5 Mar5 March 12:44
      
      Thank you – do you happen to know: What did they do/say? I don’t have a clue what to say to Bonvoy?
    - SteveD says:
      
      5 Mar5 March 12:46
      
      That is the case, yes.
      
      But in my opinion you should chase Bonvoy not Amex.
      - Sandgrounder says:
        
        5 Mar5 March 12:55
        
        I emailed bonvoy. I sent blog posts because I couldn’t find the original email (no comment). They said they would look into it, and the points posted before the reply. The adviser said the points had posted without their intervention, and gave me some extra on top for inconvenience.
      - Zara says:
        
        5 Mar5 March 13:09
        
        Thanks Sandgrounder- what email address did you use? TIA
      - Sandgrounder says:
        
        5 Mar5 March 13:25
        
        Hi Zara it was bonvoy.partner (at) marriott-service.com
      - Zara says:
        
        5 Mar5 March 13:34
        
        I contacted Bonvoy and they said they’ve opened a case and are contacting amex for resolution…. hmmm…not sure that sounds positive!
Nick_C says:

5 Mar5 March 11:50

I’ve felt for a long time that EU261 is unduly harsh and might ultimately act against the interests of consumers.

Personally, I think compensation should not exceed the cost of the ticket unless passengers suffer a real loss.

When I flew back from LA a few years ago we were delayed by over 6 hours due to a delay on the outbound flight. I wasn’t inconvenienced in any way, but the compensation exceeded the cost of the ticket. Crazy.

EU261 discourages risk taking, and in turn discourages innovation.

Ignorant climate change protestors will be celebrating the collapse of FlyBe, but some of their flights were more environmentally friendly than my small car (CO2 emissions per passenger km), and they played a key role in linking the regions. Road and rail are not suitable alternatives for many of the FlyBe routes.
- insider says:
  
  5 Mar5 March 12:08
  
  i agree – it’s a big cost to airlines which does favour consumers, but feels unbalanced. For example, i’m pretty sure if you fly to dallas on BA then connect on an AA flight somewhere, if BA was the ticketed carrier, and the AA flight is delayed, BA have to pay the full compensation. Not bad for consumers!
  - marcw says:
    
    5 Mar5 March 13:48
    
    No. AA must pay compensation. It’s the operating carrier causing the delay.
  - AJA says:
    
    5 Mar5 March 14:55
    
    I think your scenario would be out of scope of EU261 as the delayed flight (AA) did not depart from the EU. It would only kick in if the AA flight was ticketed by BA (ie on the same itinerary as the BA flight) and the delay was caused by the BA flight departing from the EU meaning you missed your booked AA flight and were rerouted onto another AA flight arriving at your ultimate destination over 3 hours later than originally scheduled..
    
    But in your scenario AA still performed the service to get you (albeit late) to your destination.They may offer something as a service recovery but it would be a goodwill gesture.
- Anna says:
  
  5 Mar5 March 12:16
  
  You think EU261 is crazy but you claimed anyway?!
  - Nick_C says:
    
    5 Mar5 March 12:28
    
    Of course. I thought MIRAS was crazy, but I claimed that as well. And I will claim Winter Fuel Allowance in the fullness of time unless a Government has the cojones to stand up to wealthy pensioners and abolish it in its current form.
    
    Anyone who flies with a profitable airline is paying for EU261 through higher ticket prices, and would be stupid not to claim it when they can.
    
    But I would prefer to see EU261 reformed, prices fall, and companies like FlyBe survive.
    - Philip says:
      
      5 Mar5 March 13:03
      
      Very well said.
    - marcw says:
      
      5 Mar5 March 13:51
      
      Honestly, it’s not like that. EC261 was there to protect customers from targeted cancelations. If you had a 10am flight to Manchester from LHR, with low loads, the airline could have told you “sorry your flights is cancelled you have been rebooked on the 12 pm flight.”. That was the main target for EC261.
      
      Of course, this developed until a judge said “a delay of 3h on short/medium haul flight is EQUIVALENT to a cancellation. +6h in long haul”. And that’s where we are now.
      - Shoestring says:
        
        5 Mar5 March 19:34
        
        yes
        
        and it has made airlines get their act together
        
        eg I honestly believe Ryanair doesn’t overbook flights on *most* flights (their stated policy) – probably just the ones where it knows no-shows are likely – they happen to be the most reliable big airline in Europe for timing, as well
      - Lady London says:
        
        5 Mar5 March 19:54
        
        BA did this to me more than once on early flights and I had it done by LX too. Lightly loaded early flights cancelled for transparently lying excuse because it was cheaper for BA to put me on the 09.30 flight instead of the 06.20 flught. Great except that flight got me with later time in Europe there too late for my interview. Ditto at the other end of the day with LX when for transparently untrue reasons the second to last flight was cancelled. For LX convenience we could all get home nearer midnight than 9pm.
        
        Thank heavens EU261 makes airlines think about this before they do it now. Yes there are still abuses and ways they can choose that inconvenience a greater number of people but don’t actually mean they have to pay anyone. But at least it keeps the abuses in check which was sorely needed.
    - Lady London says:
      
      5 Mar5 March 19:45
      
      There was a lot of abuse by airlines before EU261, @Nick_C and it was sorely needed and still is.
      
      Even with EU261 easyj and Ryan’s are still messing around passengers – but in a way that a lot of pax can’t claim.
      
      TBH @Nick,_C I’ve had the impression for a while that you work for British Airways and sit at Waterside? I think you could be a bit biased, if so.
      
      However I do agree with you that some aspects of EU261 have gone a little too far such as the compo for strikes decision. Duty of care, yes, but not an absolute right to compo.
      
      I say this as someone who in the past year has twice declined duty of care as I did not feel it was fair on the airline and I was in a position to cover the small cost of staying another day myself.
      
      A route I use was also completely cancelled by the airline and flights on another useful route severely reduced due to EU261 costs. However I think it’s fair enough that EU261 should have a moderating influence on airlines’ thoughts and actions otherwise we would be back to giving them a free hand to abuse passengers.
      - Shoestring says:
        
        5 Mar5 March 19:58
        
        [However I think it’s fair enough that EU261 should have a moderating influence on airlines’ thoughts and actions otherwise we would be back to giving them a free hand to abuse passengers.]
        
        Perfectly expressed & this is exactly what I & I guess most air travellers want – to be treated fairly & with respect – we’re not flying knowing we can rip off airlines with EC261 (if we get delayed) – but neither do we want the airlines to see us as stupid joes to be taken advantage of.
        
        A fair relationship between flight provider and the joe that pays for the flight.
      - Nick_C says:
        
        6 Mar6 March 18:05
        
        “TBH @Nick,_C I’ve had the impression for a while that you work for British Airways and sit at Waterside? I think you could be a bit biased, if so.”
        
        ROTFL. Many of my posts about BA have been critical. Dormitory class. Poor lounges. Paying for seat selection in Club. Boarding after economy passengers (with status) when flying Club. And my policy of using BA for redemptions and AA when I’m buying a ticket. I’ve never worked for BA.
        
        But I do say nice things about them as well. I try to be fair in my judgement.
- AJA says:
  
  5 Mar5 March 15:21
  
  The point of EU261 compensation is because of the way airlines would arbitrarily cancel flights and leave you stranded and inconvenienced. The amount you receive is compensation for the stress and inconvenience caused to you by the airline failing to fulfil the contract of service you paid for. It is set at the levels it is in order to incentivise the airlines to try to stick to their schedules. It is nothing to do with the cost of the fare. You don’t receive more compensation for travelling in a premium cabin vs economy.
  
  I am perfectly happy that EU261 discourages risk taking (by which I think you mean the airlines doing the risk taking?). They really should not be doing anything risky.
  
  The fact that it still exists is because airlines still do things that leave passengers inconvenienced and sometimes out of pocket. There are extraordinary circumstances that mean they do not need to pay any compensation which the airlines often use as an excuse to get out of paying even when they should.
  
  You say you weren’t inconvenienced by a 6-hour delay but that was just you. What would you have said if another passenger had an onward connection from LHR which they missed because of that delay you experienced in LA? Should that person receive compensation and you not (because you apparently weren’t inconvenienced)?
  
  I also think you were inconvenienced by being delayed by 6 hours. What you’re suggesting is that 6 hours is an acceptable delay. You’re saying that the airlines have no obligation to try to routinely get to your destination on time as per their published schedule. What’s the point of even publishing a schedule in that case? Just let the airlines publish a departure time (that they don’t have to stick to) as long as they get you to your destination at some point.
  - Nick_C says:
    
    5 Mar5 March 19:14
    
    “I also think you were inconvenienced by being delayed by 6 hours. What you’re suggesting is that 6 hours is an acceptable delay.”
    
    I wasn’t. Woke up in the morning to find a text message from BA saying there was a 6 hour delay on the flight and I should check in later. Extra sightseeing and a more convenient flight time. Didn’t even have to pay any extra for leaving the T5 car park late.
    
    If I had been inconvenienced in any way, some compensation would have been appropriate.
- Alex Sm says:
  
  6 Mar6 March 00:03
  
  this is exactly why the EU now wants to change the terms of it making claims harder
- Callum says:
  
  6 Mar6 March 08:49
  
  What risk taking and innovation do you imagine EC261 prevents? I genuinely can’t think of anything interesting. If the innovation is going to result in large reliability problems (the only way EC261 comes into it), I’m not sure it’s something I’d want happening!
  - Nick_C says:
    
    6 Mar6 March 17:59
    
    It makes it more difficult for new airlines to enter the market. BA, with a fleet of 280 aircraft, can afford to have spare aircraft to cover technical problems. A start up airline with a fleet that you can count on the fingers of one hand cannot afford to do that. So it places potential new entrants to the market at a disadvantage.
    
    It also makes bringing in a new aircraft type more risky. My delayed flight back from LAX was on the A380. The plane developed a fault, and with a fleet of on 12 BA didn’t have a suitable spare aircraft.
    
    Finally it discriminates against EU airlines. A new British transatlantic startup will have to pay compensation for every flight that is significantly delayed. A new US transatlantic airline only has to pay compensation on half of delayed flights – the ones departing the EU for the US.
Muzer says:

5 Mar5 March 12:20

What I’m curious about is the future of Southampton Airport. I feel like it’s too convenient for too many people for it to just close, having excellent road and rail and half-decent bus connections and generally being a great airport to go from. But obviously most of their flights were Flybe. So I guess it remains to be seen whether or not another airline will see the potential and buy up the slots from the administrators…
- Russ 😷 says:
  
  5 Mar5 March 13:03
  
  These flights were originally set up to transport navy personnel. Now unless they are going to move the English Channel pretty sure someone at Navy HQ is wondering if they should pay for it themselves.
- Matthew says:
  
  5 Mar5 March 13:20
  
  I imagine airports will be giving slots not selling them, bar of course LHR. I used Flybe for Cardiff to Glasgow flights, back via Bristol due to schedule issues. Generally I had a good experience with them.
  The problem is train fares are crazy, so we will now drive to Glasgow.
  Hope Flybe staff are treated fairly and all get new jobs as quick as possible, which currently is not likely.
  - marcw says:
    
    5 Mar5 March 13:46
    
    No airline owns slots. They have a right to use a specific slot in slot controlled airport if they fulfil certain conditions. They may be able to trade those rights.
    
    Majority of regional UK airports are not slo controlled.
  - mvcvz says:
    
    6 Mar6 March 12:14
    
    I concur. I use trains (northwest to London and back) in the UK around 3-4 times per year only, exclusively for work purposes. My employer funds first class tickets but, despite this, the experience is utterly miserable at least 75% of the time.
    
    I would not consider using a train for personal/leisure travel in the UK even if the tickets were free and I got to sit between Kelly Brooke and Helena Bonham-Carter every time. Now, where are my car keys as I’m off to London for the weekend?
- stevenhp1987 says:
  
  5 Mar5 March 15:50
  
  I live very close to the airport (under the flightpath). If the airport was to close the value of my home might go up… but I want to be able to jump in a taxi for < 10 minutes and go somewhere but Flybe was very expensive and the route network was very poor. I've flown from SOU only a handful of times and mostly drive up to LHR or LGW.
  
  I was disappointed when KLM left as I'm sat on a large pile of VS miles!
  
  I think they need the expansion to happen (which the majority of local residents are opposed to) in order to survive.
  - Russ 😷 says:
    
    5 Mar5 March 17:17
    
    Another view is we shut UK civil airports and catch trains to the continent and board flights there.
    - mvcvz says:
      
      6 Mar6 March 12:10
      
      Or we could simply walk across the water to wherever we wish to go. Like Shoestring.
  - Callum says:
    
    6 Mar6 March 08:51
    
    I know many people don’t understand the concept, but for some, there are more important things in life than money. Crazy I know.

This article is closed to new comments. Feel free to ask your question in the HfP forums.

Flybe enters administration – what happens next?

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