U.K. Regional Airline Flybmi Ceases Operations, Blaming Brexit Fears
by Barbara Peterson /
Flybmi, a British regional carrier that operated short-haul flights around the U.K. and Europe, abruptly stopped flying over the weekend and said it was declaring bankruptcy.
The announcement came as a surprise to the traveling public, as the airline had been promoting its trademark discount fares right up until its collapse.
The airline, which had also done business as British Midland, was a relatively small player, with just 17 planes and 25 destinations. But as a low-cost, low-fare airline, it was susceptible to the same competitive pressures that have claimed other European budget lines lately, such as the now defunct Primera Air and Monarch Airlines.
In a statement, Flybmi blamed its fate on number of “challenges”, including uncertainly over Brexit and a rise in fuel taxes and carbon changes, both of which will be affected by Britain’s impending departure from the European Union.
The airline’s sudden collapse has revived calls to implement stronger consumer protections for consumers in the event of airline bankruptcies in Europe. In the U.S., airlines typically continue to operate under Chapter 11 bankruptcy laws that protect them from creditors while they reorganize. But elsewhere, a failed airline usually goes straight into liquidation proceedings, and passengers holding tickets have no recourse other than to join a long list of unsecured creditors.
In fact, Flybmi was quick to note that it is unable to provide any refunds. “The company is unable to repay customers for cancelled flights which they have paid for as the company is in administration," Flybmi said in an FAQ posted on its website.
And the situation was already having an unintended effect on another airline, Flybe, which, due to the similarity of the carriers’ names, was getting inquiries from concerned customers.
Flybe, also U.K. budget line, has also experienced turbulence recently and was rescued by a Virgin Atlantic holding company in an eleventh hour deal to save the struggling line.