COLLAPSE LEAVES PASSENGERS FLY AND DRY
2000 jobs threatened as air operator goes into administration under growing mountain of debt but Loganair give flights lifeline
THE costs of Flybe’s collapse were laid bare yesterday as thousands of passengers were stranded across the country and beyond.
And the failed airline’s 2000 staff feared for their future.
At Edinburgh Airport, 100 staff were left in limbo along with 80 workers at Glasgow and another 80 at Aberdeen.
The UK Government showed no sign of rescuing the airline, which is said to have burned through £100million in a year.
The demise of Flybe began on Wednesday, when a Scots fuel supplier refused to extend the company further credit. That triggered a panic at airports, which began to impound aircraft.
A drop in demand caused by the coronavirus “made a difficult situation worse” for Flybe, an airline source said.
As a large proportion of Flybe’s costs was in dollars while the vast majority of its earnings was in sterling, the airline was hammered by the post-Brexit vote plunge in the value of the pound. Virgin Atlantic, Stobart Group and a US hedge fund, Cyrus Capital, stepped in with a £100million investment a year ago.
But it is thought more than £70million of this was used to pay debts and operating costs, leaving little for restructuring.
Flybe also fought a route war with Glasgow Airport-based Loganair for Scots island routes that both firms used to operate in partnership.
The fares war is believed to have cost both airlines millions before Flybe admitted defeat and pulled out.
Loganair has now said it will take on Flybe routes and axed employees.
Four Flybe aircraft were based at Glasgow – servicing flights on routes to Birmingham, Belfast, Exeter, London Southend and Southampton.
Four were based at Aberdeen – operating to Birmingham, London Heathrow, Manchester, Jersey and Belfast – while eight aircraft were based at Edinburgh.
Aberdeen Airport stressed that Flybe services operated by Eastern Airways are still flying.
In Scotland, Flybe operated out of Glasgow, Edinburgh, Aberdeen, Inverness and Wick.
According to airline industry website Routes Online, Flybe operated 42 per cent of flights out of Wick, 25 per cent from Aberdeen, nine per cent out of Edinburgh flights, nine per cent of Inverness flights and eight per cent of Glasgow flights.
The Wick and Aberdeen figures are thought to include flights by Eastern Airways, which is still operating.
A total of 33 flights from Edinburgh to destinations across the UK were axed, along with one flight to Paris, while Glasgow saw 12 flights to UK cities cancelled.
A picture circulating on Twitter showed a seizure notice placed on an aircraft at Glasgow Airport. It states the craft is “detained at Glasgow Airport...
until the charges outstanding” have been “settled”. A Glasgow Airport spokesman said a “detention notice” had been placed on a craft as a “precautionary measure”.
Rivals easyJet offered free flights home for stranded Flybe passengers and staff.
Some train operators, such as Avanti, said they would accept Flybe tickets, along with National Express coaches.
Flybe CEO Mark Anderson said: “It’s with enormous sadness and a deep feeling of sorrow I share the upsetting news that Flybe is shortly being put into administration.
“Despite every effort, we now have no alternative – having failed to find a feasible solution to allow us to keep trading.”
The owners of Glasgow Airport hit out at both the UK and Scottish Governments over their failure to reduce airport taxes, which was backed by the union GMB Scotland and the Scottish Passenger Agents’ Association.
The Scottish Government U-turned on a plan to reduce taxes under pressure from the Green Party at Holyrood.
AGS Airports – which owns Aberdeen, Glasgow and Southampton airports – said: “The loss of Flybe is a devastating blow for the airline’s employees and the tens of thousands of passengers who relied on its routes.
“Earlier this year, the UK
Government committed to levelling up all regions of the UK by conducting a review of regional connectivity. It’s vital this work is progressed as a matter of urgency and reforming air passenger duty is part of that review.”
UK Civil Aviation Authority Richard Moriarty CEO said: “This is a sad day for UK aviation and we know that Flybe’s decision to stop trading will be very distressing for all of its employees and customers.”
Highlands and Islands Airports said: “Flybe flights with Eastern Airways between Wick, John O’Groats and Aberdeen will run as normal. If you need more information, contact Eastern Airways.” Loganair announced plans to take up 16 routes formerly flown by Flybe, covering nearly 400 flights each week.
The routes – from Loganair base airports at Aberdeen, Glasgow, Edinburgh, Inverness and Newcastle – will be launched in the next four months, starting from Monday.
The airline has also opened a recruitment line for former Flybe employees.
Loganair CEO Jonathan Hinkles said the move is the result of “several weeks of behind-the-scenes contingency planning work”, cautioning it will not lead to
“over-expansion” and is “robust and sustainable”.
He added: “The collapse of a long-standing airline like Flybe marks a desperately sad day – especially for the airline’s dedicated team of employees and for customers facing disruption to their journeys.
“By stepping in quickly with a comprehensive plan, Loganair is aiming to maintain essential air connectivity within the UK regions to keep customers flying, and to offer new employment to former Flybe staff members who are facing an uncertain future.”
Customers previously booked on Flybe services on the same routes will need to make new bookings.
Sarah Nicol, a niece of former Scotland rugby captain Andy Nicol, worked for Flybe.
She tweeted: “It has all been so amazing. Thank you, Flybe.”
Andy then tweeted her picture and wrote: “This is my niece, who recently qualified as a pilot only to lose her job with Flybe going bust. Any jobs for a young, brilliant pilot?”