Airline files for administration

EAST Midlands airline BMI has filed for administration.

A total of 376 employees based in the UK, Germany, Sweden and Belgium are employed by bmiRegional.

The East Midlandsbased airline had operated flights on routes to 25 European cities, including Aberdeen, Bristol, City of Derry, East Midlands, London Stansted and Newcastle.

In a statement, the airline said difficulties which led to the collapse had included increases in fuel and carbon costs, and challenges “particularly those created by Brexit”.

A statement on its website said: “The airline has faced several difficulties, including recent spikes in fuel and carbon costs, the latter arising from the EU’s recent decision to exclude UK airlines from full participation in the Emissions Trading Scheme. These issues have undermined efforts to move the airline into profit.

“Current trading and future prospects have also been seriously affected by the uncertainty created by the Brexit process, which has led to our inability to secure valuable flying contracts in Europe and lack of confidence aroundbmi’s ability to continue flying between destinations in Europe.

“Additionally, our situation mirrors wider difficulties in the regional airline industry which have been well documented.

“Against this background, it has become impossible for the airline’s shareholders to continue their extensive programme of funding into the business, despite investment totalling over £40 million in the last six years.

“We sincerely regret that this course of action has become the only option open to us, but the challenges, particularly those created by Brexit, have proven to be insurmountable.”