Flyers’ fury as Branson pulls the plug on Flybe
PASSENGERS last night accused Flybe bosses of ‘betraying’ millions of travellers and staff members as the airline collapsed after months on the brink.
The demise of Flybe, which was Europe’s largest regional airline, yesterday triggered 2,400 job losses and left 15,000 passengers stranded across the UK and Europe.
Flybe’s owners, a consortium including Virgin Atlantic, the Stobart Group and hedge fund firm Cyrus Capital, blamed coronavirus for hastening the collapse.
But the outbreak was rejected as an excuse by furious passengers and staff, who blamed months of mismanagement and ‘broken promises’.
Damning court documents exposed how Sir Richard Branson’s Virgin group dealt a terminal blow to Flybe by abruptly pulling the plug on Tuesday night.
According to a witness statement filed by Flybe chief Mark Anderson, Virgin Atlantic pulled funding after coronavirus triggered a sharp fall in bookings for its own long-haul business.
Cabin crew member Katherine Densham arrived for her shift at Exeter Airport yesterday to find out she had lost her job. Tearful Mrs Densham said: ‘I thought we’d be safe, but not this time.’
Flybe operated up to 50 UK routes, accounting for 40 per cent of domestic flights, and acted as a lifeline for 9.5million passengers a year. Many of its destinations are not served by any other airline.
In Scotland, Nicola Sturgeon pledged to ‘provide support’ to more than 300 workers who have now lost their jobs, while Scottish airline Loganair plans to take on 16 routes.
The firm said it expects around 100 jobs will be created, with flights operating from its existing bases in Aberdeen, Edinburgh, Glasgow, Inverness and Newcastle.
Bosses have confirmed they will ‘prioritise’ applications from Flybe staff for the roles.
The airline employed about 300 people directly in Aberdeen, Edinburgh and Glasgow. Miss Sturgeon said Loganair will move to operate several former Flybe routes, including connections to Manchester, Belfast and Southampton, while easyJet will launch routes between Edinburgh and Glasgow and Birmingham later this month.
Yesterday, 33 flights from Edinburgh Airport to destinations across the UK were cancelled, along with one flight to Paris.
Glasgow Airport saw 12 flights to UK cities cancelled, while services were also scrapped at Aberdeen Airport and from Highlands and Islands Airports hubs.
The GMB union said eight regional airports – Wick, Anglesey, Southampton, Belfast City, Exeter, Newquay, Jersey and Cardiff – could face closure.
Ministers vowed to work ‘urgently’ to re-establish key routes. But Brian Strutton, of the British Airline Pilots’ Association, said: ‘Six weeks ago, when the ownership consortium lost confidence, the Government promised a rescue package. Throughout, pilots, cabin crew and ground staff have done their jobs brilliantly. Flybe staff will feel disgusted at this betrayal.’
Leading economist Frances Coppola said: ‘If Flybe’s only problem was coronavirus, Branson and Stobart could have stumped up some cash to tide it over. Coronavirus is a convenient excuse for an exit.’
The Prime Minister’s spokesman said: ‘We are working with the industry... to look at the impact which this will have and to see what help we can provide.’
THOUSANDS of passengers stranded, 2,400 workers unemployed and the biggest provider of flights between the regions of Britain driven out of business.
This is the fallout from the collapse of Flybe – the first corporate victim of coronavirus. Yes, it was a weak company and had almost folded before. But plummeting passenger numbers caused by coronavirus fears certainly pushed it over the edge.
And it probably won’t be the last. Flybe could yet prove to be the canary in the mine. The travel industry is especially vulnerable. But any firms relying on cash flow, especially if they have debts to service, could soon succumb. So the Government and banks must be ready to ensure that business is supported in these fraught times, through tax breaks and credit extensions.
The demise of Flybe has dire implications for many parts of the country, particularly those which are difficult or expensive to reach by rail or road.
Boris Johnson has pledged to ‘level up’ the regions. Improving transport links is central to that strategy. So how can he persuade other airlines to take up these routes, so vital to local economies?
One possibility is to cut air passenger duty on internal flights, making domestic journeys more viable. Another is direct subsidy, perhaps under the existing public service obligation scheme.
Both have their difficulties. Cutting passenger duty would inflame the green lobby, while direct subsidy would be anathema to free-market Tories.
But if Boris is to keep his promise to boost Britain’s ‘left-behind’ towns, doing nothing is not an option.