Flybe Airlines Shutters Amid Reduced Flight Demand

Flybe, the largest independent regional airline in Europe, collapsed on Thursday after the severe reduction in travel demand stemming from the coronavirus outbreak.

“All flights have been grounded and the UK business has ceased trading with immediate effect,” the airline said in a statement. It also advised customers if they are due to fly with Flybe, to not travel to the airport unless they have arranged alternative travel plans with another airline.

Flybe had been going through financial troubles for a while, and with the impact on travel from the coronavirus, coupled with the UK government refusing a proposed rescue package, the carrier’s business just could not be sustained.

A few regional airlines have offered to maintain several of the shuttered carrier’s services. Loganair, a regional airline in Scotland, announced it is committed to maintaining 16 Flybe routes; and Eastern Airways, a former Flybe franchise partner based in England, announced it will take over three additional routes formerly operated by Flybe, according to Reuters.

While airlines around the world have been hit by reduced travel demand and forced to alter schedules and cancel routes to affected destinations, Flybe’s shuttering represents one of the first big corporate casualties of the coronavirus.

In order to avoid further negative impacts to airlines, the International Air Transport Association (IATA) is reaching out to aviation regulators worldwide to request that the rules governing use of airport slots be suspended for the 2020 season.

Currently, the rules for airport slot allocation require that airlines must operate at least 80% of their allocated slots under normal circumstances, and failing to comply with this means the airline loses its right to the slot during the next equivalent season.

“There are precedents for previous suspension of the slot use rules, and we believe the circumstances again call for a suspension to be granted,” said Alexandre de Juniac, IATA’s director general and CEO. “The world is facing a huge challenge to prevent the spread of COVID-19 while enabling the global economy to continue functioning. Airlines are on the frontline of that challenge and it’s essential that the regulatory community work with us to ensure airlines are able to operate in the most sustainable manner, both economically and environmentally, to alleviate the worst impacts of the crisis.”