Passengers foot bill to get home as airline collapses

Flybmi grounds all planes after falling victim to price war

HUNDREDS of passengers were left stranded abroad and forced to pay extra to get home after Flybmi collapsed at the weekend and cancelled all flights.

The budget airline blamed uncertainty over Brexit and rising fuel prices for its decision to call in administrators – just as half-term started for most schools across the country.

The move, which puts 376 jobs at risk, comes with other budget airlines struggling amid a fierce price war.

When the announcement was made on Saturday evening, some passengers were already in the departure lounge.

Furious travellers said they were offered no alternative arrangements and were unable to contact representatives of the airline.

The situation is in stark contrast to two years ago when the civil aviation authority chartered flights to bring travellers home after the failure of another airline, Monarch.

Flybmi’s collapse will affect travel plans for tens of thousands in the coming weeks. The airline had been due to carry 1,500 passengers yesterday alone.

customers will not receive refunds and must pay again to travel – unless covered by insurance – when prices are high due to the half-term holiday.

Stuart lloyd, of travel insurer columbus Direct, said even passengers with travel insurance may find themselves ineligible. He said: ‘check for any mention of “scheduled airline failure insurance”. Most companies do not cover you as standard.’

Flybmi has been badly affected by a recent price war between budget airlines which left it unable to compete with bigger rivals.

and while parents company airline investments limited blamed Brexit uncertainty in part, the airline has made losses each year since 2012.

The current price war has seen Ryanair slash prices between london and European cities to £18 – leading it to cut its annual profit forecast from £ 1.1billion to £880million.

a spokesman for Flybmi – whose owners invested £40million to keep the airline afloat in recent years – said it faced ‘insurmountable’ difficulties. challenges included ‘recent spikes in fuel’ as well as ‘carbon costs’ from an EU scheme to offset emissions.

The spokesman added: ‘current trading and future prospects have also been seriously affected by the uncertainty created by the Brexit process. additionally, our situation mirrors wider difficulties in the regional airline industry.’

But independent aviation expert alex Macheras said: ‘Brexit is absolutely not the largest factor. This airline hasn’t turned a profit in years. There is fierce competi- tion with low-cost carriers, which is driving down fares.

‘an airline needs a strong parent company guaranteeing cash or it faces being eaten alive.

‘last year’s fuel price rise also had a dramatic effect. For example Emirates reported an 86 per cent fall in profits. What’s that going to do to smaller airlines?’

He added: ‘There was no sign Flybmi had any kind of danger ahead. it was still selling tickets at 4pm on Saturday then announced the closure at 6pm.’ He urged stranded passengers to ask other airlines for a discount.

Flybmi, based at East Midlands airport, flew to 25 cities in the UK and Europe, including aberdeen, Bristol, Munich, Oslo and Paris. it was part of British Midland international – which dates back to the 1930s but was bought out by lufthansa in 2009, then sold again to British airways owner international airlines Group in 2012.

Flybmi was offloaded to airline investment Holdings, a private firm part- owned by millionaire brothers Peter and Stephen Bond.

Meanwhile, Flybe – which has seen its shares collapse from 48p last March to 2p – yesterday reassured passengers it was still in business after confusion between the company names.

a Department for Transport spokesman said: ‘We are supporting those affected and are in contact with airports, airlines and other transport providers to ensure everything possible is being done to help them.’

‘Airlines being eaten alive’