UK-based regional low-cost airline Flybe said it had entered administration and grounded all flights due to what its shareholder, Virgin Atlantic, called an affect of the coronavirus disease (COVID-19) on sales
LONDON (Pakistan Point News / Sputnik - 05th March, 2020) UK-based regional low-cost airline Flybe said it had entered administration and grounded all flights due to what its shareholder, Virgin Atlantic, called an affect of the coronavirus disease (COVID-19) on sales.
"Flybe entered administration on March 5, 2020 ... All flights have been grounded and the UK business has ceased trading with immediate effect," the company said in a press release.
In January, the UK government approved a plan to rescue Flybe, intending to allocate up to 100 million Pounds (over $129 million) to the troubled airline.
Virgin wrote in a press release that despite efforts to rescue the airline, "the impact of COVID-19 on Flybe's trading means that the consortium can no longer commit to continued financial support."
The company, which has a fleet of 63 aircraft and employs over 2,000 people, has stopped all flights. Meanwhile, the UK authorities asked other airlines, as well as bus and train operators, to accept Flybe passengers on tickets already sold.
Early last year, Flybe was acquired by Connect Airways, a consortium of Virgin Atlantic, Stobart Aviation and investment fund Cyrus Capital Partners, for 2.2 million pounds and an obligation to attract a 20 million pound bridge loan.
Founded in 1979, Flybe was one of Europe's largest independent regional airlines servicing 190 flights in 15 countries and carrying about 8 million passengers a year.
As of Thursday, more than 95,700 cases of COVID-19 have been reported globally, with more than 3,200 deaths, a vast majority of which were in China, where the virus was first detected. At the same time, more than 53,400 people have recovered. The UK has registered over 100 cases.
