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
Signin 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

Airlink and Azorra Finalise Lease of 10 New Embraer E195-E2s

Data breach affecting its customers of Air France-KLM

Aviator: The Flight-Inspired Game Taking Off in the Online World

Digital IPC Eligible for Passengers Inbound to Sydney

AvNav Reveals Upgrades at EAA AirVenture Oshkosh 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

Milan Malpensa Airport.
5 Italian Airports allows Liquid over 100ml in hand-carry
Airports Aviation Travel
ba
A British Airways Trip to Bucharest
Airlines Airports Travel
A Cathay Pacific A330 aircraft.
Cathay Pacific Orders More Boeing 777-9 for Fleet Renewal
Aircraft Airlines Aviation
Passenger traffic at Heathrow Airport
Myth vs. Fact: Airport Rules that Confuses up to 90% of Brits
Airports Careers Did You Know
Aer Lingus introduces new mobile update
Aer Lingus’ Major Mobile Update for Travellers
Aviation Points & Loyalty Technology
//

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

Signup to our Newsletter!

And get the latest aviation news via our weekly news digest!

© 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?