Flybe planes ‘are impounded at UK airports’ amid fears the ailing airline has collapsed

Regional airline Flybe has collapsed leaving passengers stranded at the wrong airports as planes are impounded. 

The regional carrier narrowly avoided going bust in January, but has continued to lose money until it went to the wall last night.

A drop in demand caused by the coronavirus ‘made a difficult situation worse’ for Flybe and the Civil Aviation Authority confirmed in the early hours that the firm had ceased trading ‘with immediate effect’. 

Passengers on the low-cost European carrier last night told of how they were kicked off planes after hours waiting on the tarmac for take-off.

Many have been left stranded in the wrong city with no means of getting home as seizure notices are placed on planes across the country including in cities such as Manchester and Glasgow.

And overnight the airline’s signage was already being removed from displays at Exeter Airport. The airline’s website has stopped working and an error message appears upon loading stating the link is ‘no longer live’. 

Mark Anderson, the CEO of Flybe, last night told of his ‘enormous sadness’ in a letter to staff in which he said E&Y are expected to be appointed as administrators for the company.

He told of how coronavirus had put ‘pressure on an already difficult situation’ and said he appreciated how ‘distressing this news is and the shock and numbness’ staff will be feeling.

Flybe’s collapse will put 2,300 jobs at risk and could cost customers tens of thousands of pounds in lost holidays.

Many were also expected to be left stranded across the UK and Europe.

Crisis talks were held throughout the day on Wednesday to try to secure a rescue package, but no deal was agreed.  

Flybe aircraft at airports including Edinburgh were not being refuelled as engineers were laid off last night.

There is expected to be a big knock-on effect among airport staff such as baggage handlers.  

The airline had been facing fresh doubts over its future after failing to secure a £100 million loan.

Last night, passengers reported being turned away from their flights as staff informed them there would be no more flights. 

Peter Smith, an ITV journalist, tweeted: ‘Has FlyBe just ceased operating in front of my eyes? 

‘Waiting to board a FlyBe flight to Birmingham and all of their flights have just been cancelled. 

‘Advice from staff is FlyBe “definitely will not be flying out tomorrow either.”‘

Flybe blamed the disruption to flights at Glasgow Airport on ‘miscommunication’ over refuelling of two services to Birmingham. 

But it later emerged that the airline had gone bust with its final airborne flights touching down just before midnight.  

Passengers told of how they were left stranded on planes on Wednesday evening. A flight bound for Devon was among those grounded.

One of those on board a plane sat on the runway at Manchester Airport was Phil Hoult, who spoke to Devon Live.

Mr Hoult, who lives in Exeter, said: ‘I’m stuck on a plane at Manchester Airport. The captain has told us we won’t be flying anywhere and I think we’re going to be kicked out with nowhere to go.

‘We think it’s because of Flybe not being able to pay the airport fees but there’s no regard for any passengers.

‘The flight is full, maybe 200 people and it’s very hot. It’s not good and nobody knows what’s going to happen.’

Jeff Morton, works in property, also spoke of being trapped on a plane.

He told MailOnline: ‘Sad day that Flybe has collapsed. I boarded the 8.40pm at Manchester headed for Southampton but at 10.50pm we are told we will be getting off the plane and not flying anywhere. 

‘The captain and crew have been marvellous considering what this event means to them personally and all the Flybe staff. 

‘It’s very quiet on the plane we have sat here for some hours earlier we were actually moving going for take off quite close to the scheduled departure time but suddenly engines were off and we were called back to the stand.’ 

Others told of how they had been left ‘stranded’ at airports including Manchester after the collapse of the low-cost airline.   

‘Just off Flybe flight and stranded at Manchester Airport,’ one said. While another said: ‘My daughter is due to fly home with Flybe tomorrow night. She’s stranded on her own. All said and done though, I really feel for the staff. Sad day.’

Kind-hearted Britons offered lifts to those affected. One said: ‘Flybe crew I know this won’t get you to where you want to be, but if you end up stranded and it gets you closer, I am driving from Glasgow to Leeds tomorrow around 12 noon tomorrow. 

‘I will be driving from Leeds back to Glasgow on Friday, again around noon. Space for three.’

Jodie Lynch told of how she was taken off the Birmingham to Edinburgh flight at Manchester. She and fellow passengers were worried about being left stranded. 

But Flybe ended up putting on coaches back to Edinburgh and Glasgow. 

‘Mood very positive on plane,’ she said. ‘Staff provided us with as much information as they could and were lovely on Edinburgh flight. 

‘They didn’t seem to have been given much information whatsoever. Passengers were in very good spirits considering and all rallying together. 

‘Lots of people asking the staff if they were ok and offering support. Staff tried to keep spirits high making jokes with everyone. It’s a credit to them.’

Other passengers spoke of how they would lose out financially as a result of the collapse.

One said: ‘Just had to face time American friend who is meant to be coming to us 14th then going to Paris on Flybe 17th. The Louvre already cancelled their tour group because of Covid 19 and now it looks like they wont get to Paris.’

While another added: ‘I have flights booked from Jersey to Birmingham in June for my sister’s hen weekend.

‘Then I also have flights booked for my sister’s wedding for myself and my husband in July from Jersey to Birmingham and I will be devastated as I have already spent over £400 on flights.’

Lesley Gibb told MailOnline: ‘My 92 year old father just arrived on a flight from Edinburgh to Southampton to arttend a family Christening on Sunday. He is due to fly back to his home on Tuesday next week. We have heard nothing from Flybe! 

‘They seemed to still taking advance bookings a couple odays ago. How do they expect my father to return home if we are not given information to enable us to book for another airline. 

‘He will now have to travel from Gatwick which will increase his journey home by at least 4 hours!’

Caroline Fairhurst said she was ‘devastated’ by the collapse. She said: I’ve just booked a family meal tonight for my mother’s birthday on March 20 in Newcastle. 

‘With no flights out of Cornwall or Devon I’m looking at an eight hour train or car journey each way.

‘I’ll end up paying more than double what I’ve already lost for a two day trip.’

Some staff and passengers tried to put a brave face on the situation sitting down to share a drink in the waiting area at Manchester Airport. 

Two pilots, Captain Adam Stafford and first officer Jonathan Smith, who were turned round as they waited to take off to fly to Southampton from Manchester, also posed smiling for a photograph despite losing their jobs.

Mark Anderson, CEO of Flybe, said in a letter to staff last night: ‘I do appreciate how distressing this news is and the shock and numbness that you will be feeling. 

‘Despite your hard work, commitment and some amazing results which we have delivered, and have been achieving up to the last day of operation – particularly for our customers who depend on us across the country, we have come to the end of the road.’

He added: ‘While our shareholders and the Leadership Team have worked with the Government and key suppliers to try to get the funding and support needed, this has not materialised. 

‘The coronavirus has impacted both our shareholders and ourselves and has put additional pressure on an already difficult situation. I am very sorry that we have not been able to secure the funding needed to continue to deliver our turnaround plan.’

Flybe, which has been hit by a slump in bookings due to the virus outbreak, was saved from going bust by the government earlier this year. 

As part of the January rescue deal, it agreed an arrangement to defer tax payments of ‘less than £10 million’ with HM Revenue and Customs. Ministers also agreed to hold a review into Air Passenger Duty (APD).

The structure of APD – which adds £26 to the price of most return domestic flights such as those operated by Flybe – could be altered in next week’s Budget.

Flybe serves around 170 destinations and has a major presence at UK airports such as Aberdeen, Belfast City, Manchester and Southampton. It flies the most UK domestic routes between airports outside London.

Unions expressed fears that airline Flybe was on the verge of administration, threatening thousands of jobs and the future of a number of regional airports. 

Mike Clancy, general secretary of the Prospect union, said it would be a ‘devastating blow’ for its members working for Flybe if it goes into administration.

He said: ‘The airline provides important connections to and from parts of the UK where other viable options often don’t exist.

‘A number of regional airports are also highly reliant on Flybe for most or all of their scheduled services.

‘Prospect will do everything we can to support our members but the truth is the Government has badly let them down.

‘The failure to provide the loan that is required as part of a package of rescue measures means the Government has failed in its commitment to every part of the UK.’

Nadine Houghton, national officer of the GMB union, said: ‘These unfolding developments are a tragedy not only for Flybe’s loyal workforce, but a domino effect now puts 1,400 jobs in the wider supply chain at immediate risk and threatens the future of vital regional airports.

‘The last thing regions crying out for investment need is to see infrastructure that maintains good jobs ripped away.

‘We need the Government to urgently step in and save jobs wherever possible. The damage to already fragile local economies must be minimised.’ 

Shadow transport secretary Andy McDonald said: ‘The collapse of Flybe is disastrous news for passengers and employees alike and will cause real anxiety in many regions throughout the country.

‘The Civil Aviation Authority is sadly very well practised, following the collapse of Monarch and Thomas Cook, at responding to airline failure and looking after passengers. No doubt they will do that once more.’

Rory Boland, editor of Which? Travel magazine, said: ‘This is a stark reminder for passengers to ensure they have protections such as airline failure insurance, and to book flights with a credit card so that they can reclaim the cost with their card issuer should an airline go bust.’ 

Unite national officer Oliver Richardson said: ‘Unite members and the entire staff at Flybe will be feeling angry and confused about how and why the airline has been allowed to collapse.

‘It is simply outrageous that the Government has not learned the lessons following the collapse of both Monarch and Thomas Cook, that the much promised airline insolvency review has still not materialised.’

A series of issues have affected the airline’s finances, including rising fuel costs, falling demand, competition from road, rail and other airlines, plus a weakening of the pound.

It was bought by a consortium comprising Virgin Atlantic, Stobart Group and Cyrus Capital in February 2019, but has continued to make losses.

Rival Ryanair has predicted the drop in demand for flights due to the coronavirus will result in some European airlines failing in the coming weeks. 

Wizz Air – which focuses on the central and eastern European markets – said it will reduce flights from March 11 to countries affected by the virus – mostly to Italy – and is looking at cutting capacity by about another 10% between April and June. 

The airline said a task force has been set up to ‘address the financial implications of Covid-19’ since the start of the outbreak.

Measures taken include ‘significant’ cutting of cost overheads and discretionary spending, pausing recruitment and non-essential travel, and working with suppliers to make further savings.

The London-listed Hungarian company did not estimate the size of the hit from the outbreak in the year to March 31, adding that it is ‘difficult to predict the extent and the duration of the outbreak and the impact on the next financial year’.

Chief executive Jozsef Varadi said: ‘Our ever-disciplined attitude to cost enables Wizz Air to partly offset some of the headwinds due to the Covid-19 outbreak, which have driven a temporary decline in demand and an increase in the cost of disruption as we put the well-being of passengers and crew first.’

It comes after rivals have also cancelled flights and reined in routes in response to coronavirus.

British Airways owner International Airlines Group (IAG) said on Monday it was cancelling more than 400 flights, mostly on short-haul routes between Heathrow and Italy, France, Austria, Belgium, Germany, Ireland and Switzerland.

The airline had already suspended its flights serving mainland China and reduced the frequency of flights to northern Italy and Singapore.

Ryanair also said on Monday it was cancelling up to one in four flights on some of its routes, particularly those serving Italian airports, while other measures include ‘rolling schedule cuts’, allocating leave or paid leave to pilots and cabin crew, working with suppliers to cut costs and freezing recruitment, promotion and pay across its network.

Wizz Air’s rivals easyJet and Ryanair have also cancelled flights into and out of Italy.

At the time of Flybe’s rescue, rival airlines complained that they should not be penalised for their own success and should also be given a tax holiday.

British Airways owner International Airlines Group claimed the arrangements breached state aid rules.

Garry Graham, deputy general secretary of the Prospect union, said: ‘Flybe provides important transport connections to and from parts of the UK where other viable options often don’t exist. A number of regional airports are highly reliant on Flybe for most or all of their scheduled services.

‘Reports that the Government may fail to provide the loan that is required as part of a package of rescue measures is very worrying. This risks the Government turning its back on these areas of the country and the workers at those airports.

‘The Government needs to come forward with concrete proposals on how it will support the services Flybe provides and is a crucial test of its commitment to every region of the UK.’

Brian Strutton, general secretary of the British Airline Pilots Association, said: ‘The Government made unequivocal promises to keep Flybe flying and loyal staff and passengers rightly expect this Government to keep its word.

‘The delay in ratifying the promised deal is unacceptable because Flybe needs to get on with its business plan for 2020 to secure regional connectivity that the Government places so much emphasis on.’

Downing Street would not comment on Flybe’s situation but stressed the Government’s commitment to regional connectivity.

The Prime Minister’s official spokesman said: ‘We don’t comment on commercially sensitive matters.

‘We are firmly committed to promoting and safeguarding regional growth and connections.’

Unite assistant general secretary Diana Holland said: ‘The Government needs to step in to keep Flybe flying.

‘Many of Flybe’s routes are unique, the passengers who use those routes and the communities that Flybe serves must not be abandoned.

‘The Government would be wholly negligent to allow Flybe to fall into administration rather than demonstrating it has learned the lessons from Monarch and Thomas Cook and implementing the airline insolvency review

‘Unite is seeking an urgent meeting with Department for Transport ministers to discuss Flybe’s future.’

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