By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Travel Radar - Aviation NewsTravel Radar - Aviation News
  • Breaking News
  • Aviation
    • Aircraft
    • Airlines
    • Airshow & Events
    • Careers
    • Manufacturing
  • Travel
    • Airports
    • Points & Loyalty
    • Technology
    • Trip Reviews
  • Newsletters
Reading: Flybe Saved—For Now.
Share
Sign In
Notification Show More
Font ResizerAa
Font ResizerAa
Travel Radar - Aviation NewsTravel Radar - Aviation News
  • Breaking News
  • Aviation
    • Aircraft
    • Airlines
    • Airshow & Events
    • Careers
    • Manufacturing
  • Travel
    • Airports
    • Points & Loyalty
    • Technology
    • Trip Reviews
  • Newsletters
Have an existing account? Sign In
Follow US
Copyright © Travel Radar Media Ltd. 2024 | All Rights Reserved
Travel Radar - Aviation News > News > Flybe Saved—For Now.

Flybe Saved—For Now.

Travel Radar
Last updated: 26 January 2020 20:25
By Travel Radar Staff 3 Min Read
Share
SHARE

The UK government business secretary Andrea Leadsom announced yesterday (Tuesday) that the UK regional airline Flybe had been saved from collapse.

The Exeter-based airline has almost 200 routes in the United Kingdom and Europe, operating 40% of domestic flights as well as destinations in nearby Europe including Hamburg, Milan and Nantes.

Flybe flies roughly 2500 flights a week across its network, carrying about eight million passengers a year and employing approximately 2300 people. It was saved from bankruptcy a year ago by the Connect Airways consortium of Virgin Atlantic, the Stobart Group and a US hedge fund, Cyrus Capital. At that time the carrier was brought for a mere £2.8 million but Connect was obliged to invest tens of millions of pounds to support the ailing company. Plans are afoot to rebrand the operator as Virgin Connect, capitalising on the brand recognition of Richard Branson’s organisation.

The reported rescue package has three components, all of which have proved controversial;

  • The likely deferment of Flybe’s tax burden of £100 million for three years by reducing or dropping the Airline Passenger Duty (APD) on domestic flights.
  • A potential government loan.
  • A further investment from Connect.

In the longer term the government has committed to undertake a review of regional connectivity, not least to support those who voted Conservative in the recent general election. The government is keen to avoid another airline collapse such as that of Thomas Cook last year.

The APD proposal has met with stiff opposition from environmental groups who argue that air travel should be made more expensive, not cheaper; this since aviation (they claim) is a major and growing contributor to carbon emissions.

The government loan proposal is under fire as well, the argument being that government should not bail out failing private organisations and is a misuse of public funds in effect supporting Virgin.

Flybe has struggled to turn a profit since 2010. Their business model has not (yet?) shown it’s possible to sustain a profitable niche serving the smaller centres in the UK.

Time alone will tell if the rescue package will be successful.

You Might Also Like

Alaska and Hawaiian Airlines Debut Conservation Film for World Oceans Month

Air Canada Launches Flights to Porto

easyJet’s Financial Performance Results in Loss at Half Year 2024-25

Air New Zealand Set to Receive New Airbus A231neo

PSA Airlines Set to Debut Aircraft 639 in July 2025

Share This Article
Facebook Twitter Email Copy Link
What’s your thoughts?
Love0
Sad0
Happy0
Angry0
Travel Radar
By Travel Radar Staff
Follow:
Articles from guest contributors wishing to remain anonymous are credited to this account. Want to contribute to Travel Radar either in-name, or anonymously? Get in touch: [email protected]
Previous Article Flybe Saving Flybe?
Next Article Delta Dumps Fuel Over LA Schools
1 Comment
Subscribe
Login
Notify of
guest
guest
1 Comment
Oldest
Newest Upvoted
Inline Feedbacks
View all comments

Stay Connected

FacebookLike
TwitterFollow
InstagramFollow
YoutubeSubscribe

Trending News

AIR Tap Portugal aircraft
TAP Air Portugal: Terceira To San Francisco
Airlines Aviation Travel
BETA Technologies' all-electric Conventional Takeoff and Landing aircraft (eCTOL)
BETA Technologies Lands Passenger-Carrying Electric Aircraft
Aviation Manufacturing Travel
Paris Airshow 2019, Airbus A350-1000
Etihad Airways Enhances Sydney Route
Aircraft Route Development
Professor Ahmet Bolat
Turkish Airlines Chairman secures second term of IATA board
Airline Economics Airlines
STARLUX Airlines Starwalker 801
Etihad Airways signs codeshare partnership with STARLUX Airlines
Airline Economics Airlines Route Development
//

Travel Radar is the leading digital hub for all things aviation and air-travel. Discover our latest aviation news, aviation data, insight and analysis.

Discover

  • About Us
  • Contact Us
  • Careers
  • Press & PR
  • Privacy & Legal

Our Content

  • News
  • Data
  • Images
  • Jobs
  • Subscribe

Sign Up for Our Newsletter

Subscribe to our newsletter to get our newest articles instantly!

Click here to Signup!

© Travel Radar Media Ltd. 2015-2025 | ISSN #2635-0696 | Trademark #UK00003579704
wpDiscuz
adbanner
AdBlock Detected
Ads help us bring you high-quality, independent journalism for free. Support us by whitelisting us from your ad blocker.
Okay, I'll Whitelist
Welcome to the TR Community!

Sign in to your account

Register Lost your password?