Flybe in financing talks to survive

Regional airline Flybe is fighting for survival, with the UK government being asked to help prevent a second airline failure in less than six months, according to media reports. 

Flybe, which has 2,000 staff, was bought by Connect Airways, a consortium created by Stobart Group, Virgin Atlantic and investment adviser Cyrus Capital for a cut-price £2.2 million a year ago.

If Flybe collapsed, it would be the second high-profile failure in the UK’s travel industry in less than six months after Thomas Cook went into liquidation last September.

Accountancy firm EY is said to be on standby to handle the possible administration of Flybe.

Flybe said in astatement: “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 rumor or speculation.”

A Department for Transport spokesperson said it did not comment on speculation or the financial affairs of private companies.