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| Flybe, a British Regional Airline, Stops Flying | Flybe, a British Regional Airline, Stops Flying |
| (14 days later) | |
| Flybe, an ailing regional airline in Britain that was praised for flying into underserved corners of the country, ceased operations on Thursday after financial strains caused by coronavirus. | Flybe, an ailing regional airline in Britain that was praised for flying into underserved corners of the country, ceased operations on Thursday after financial strains caused by coronavirus. |
| In a notice on its website dated Thursday, Flybe said that all its flights had been grounded and that it would not be able to make other arrangements for its passengers. It said the company had been placed in administration, and it directed questions to Ernst & Young, the auditing firm. | In a notice on its website dated Thursday, Flybe said that all its flights had been grounded and that it would not be able to make other arrangements for its passengers. It said the company had been placed in administration, and it directed questions to Ernst & Young, the auditing firm. |
| The company reportedly had about 2,000 employees. Efforts at a government bailout, announced this year, never got final approval. | The company reportedly had about 2,000 employees. Efforts at a government bailout, announced this year, never got final approval. |
| “This is a sad day for U.K. aviation, and we know that Flybe’s decision to stop trading will be very distressing for all of its employees and customers,” said Richard Moriarty, chief executive of Britain’s Civil Aviation Authority, in a separate statement from the British regulator. | “This is a sad day for U.K. aviation, and we know that Flybe’s decision to stop trading will be very distressing for all of its employees and customers,” said Richard Moriarty, chief executive of Britain’s Civil Aviation Authority, in a separate statement from the British regulator. |
| Officials expressed hope that other airlines would pick up some of Flybe’s service. On Thursday afternoon, Loganair, a Glasgow-based regional airline, announced that it would take up 16 of Flybe’s routes, and offered to hire some of its pilots, cabin crew and office support crew. | Officials expressed hope that other airlines would pick up some of Flybe’s service. On Thursday afternoon, Loganair, a Glasgow-based regional airline, announced that it would take up 16 of Flybe’s routes, and offered to hire some of its pilots, cabin crew and office support crew. |
| The coronavirus outbreak, which has sickened more than 95,700 people in at least 81 countries, has hit the travel industry hard, leading airlines big and small to cut flights as tourists stay home. | The coronavirus outbreak, which has sickened more than 95,700 people in at least 81 countries, has hit the travel industry hard, leading airlines big and small to cut flights as tourists stay home. |
| For Flybe, which had been on financial life support for months, an increase in bookings was necessary for its survival, Graham Braithwaite, director of transport systems at Cranfield University, said by phone on Thursday. | For Flybe, which had been on financial life support for months, an increase in bookings was necessary for its survival, Graham Braithwaite, director of transport systems at Cranfield University, said by phone on Thursday. |
| “It was already in trouble, and the coronavirus accelerated the inevitable,” just as bookings were expected to pick up ahead of spring and summer holidays, Mr. Braithwaite said. | “It was already in trouble, and the coronavirus accelerated the inevitable,” just as bookings were expected to pick up ahead of spring and summer holidays, Mr. Braithwaite said. |
| As a low-cost regional airline, Flybe was “operating in a very competitive and price sensitive market, and it was vulnerable to rising costs,” said Lucy Budd, professor of Air Transport Management at De Montfort University, in an email on Thursday. | As a low-cost regional airline, Flybe was “operating in a very competitive and price sensitive market, and it was vulnerable to rising costs,” said Lucy Budd, professor of Air Transport Management at De Montfort University, in an email on Thursday. |
| Mr. Braithwaite added: “Flybe ran out of options and ran out time.” He warned that Flybe might have been the first airline whose collapse was sped up by the virus, but that it wouldn’t be the last.The carrier’s financial problems go back at least to October 2018, when it issued a profit warning based on projections of weaker demand. Its shares fell by about a third, as analysts pointed to increasing competition with budget carriers like Ryanair and uncertainty leading up to Britain’s departure from the European Union. Brexit was widely considered to be a factor in last year’s collapse of Thomas Cook, the British travel agency. | Mr. Braithwaite added: “Flybe ran out of options and ran out time.” He warned that Flybe might have been the first airline whose collapse was sped up by the virus, but that it wouldn’t be the last.The carrier’s financial problems go back at least to October 2018, when it issued a profit warning based on projections of weaker demand. Its shares fell by about a third, as analysts pointed to increasing competition with budget carriers like Ryanair and uncertainty leading up to Britain’s departure from the European Union. Brexit was widely considered to be a factor in last year’s collapse of Thomas Cook, the British travel agency. |
| Flybe’s prospects briefly brightened a year ago when it was bought for 2.2 million pounds ($2.8 million) by Richard Branson’s carrier, Virgin Atlantic, and its partners, Stobart Group and Cyrus Capital. | Flybe’s prospects briefly brightened a year ago when it was bought for 2.2 million pounds ($2.8 million) by Richard Branson’s carrier, Virgin Atlantic, and its partners, Stobart Group and Cyrus Capital. |
| But financial problems continued, and the British government announced this year that it was exploring options that could lead to its recovery, including adjustments to the Air Passenger Duty, a tax paid by plane operators. | But financial problems continued, and the British government announced this year that it was exploring options that could lead to its recovery, including adjustments to the Air Passenger Duty, a tax paid by plane operators. |
| In January, Sajid Javid, then chancellor of the Exchequer, said the government would take new measures to support connectivity across Britain. | In January, Sajid Javid, then chancellor of the Exchequer, said the government would take new measures to support connectivity across Britain. |
| “I welcome Flybe’s confirmation that they will continue to operate as normal, safeguarding jobs in U.K. and ensuring flights continue to serve communities across the whole of the U.K.,” he said in a statement at the time. | “I welcome Flybe’s confirmation that they will continue to operate as normal, safeguarding jobs in U.K. and ensuring flights continue to serve communities across the whole of the U.K.,” he said in a statement at the time. |
| But the measures received a lukewarm response from Prime Minister Boris Johnson. | But the measures received a lukewarm response from Prime Minister Boris Johnson. |
| “It’s not for government to step in and save companies that simply run into trouble,” he told the BBC in January, “but be in no doubt that we see the importance of Flybe in delivering connectivity across the whole United Kingdom.” | “It’s not for government to step in and save companies that simply run into trouble,” he told the BBC in January, “but be in no doubt that we see the importance of Flybe in delivering connectivity across the whole United Kingdom.” |
| In February Mr. Javid quit as chancellor, in a reshuffling of Mr. Johnson’s government. The bailout effort ultimately failed, according to The Financial Times, after the government rejected the idea of a £100 million loan. | In February Mr. Javid quit as chancellor, in a reshuffling of Mr. Johnson’s government. The bailout effort ultimately failed, according to The Financial Times, after the government rejected the idea of a £100 million loan. |
| Flybe, which was based in Exeter, in southwestern England, dominated many smaller airports. For example, it provided 95 percent of all flights at Southampton Airport, along Britain’s southern coast. | Flybe, which was based in Exeter, in southwestern England, dominated many smaller airports. For example, it provided 95 percent of all flights at Southampton Airport, along Britain’s southern coast. |
| Another major service hub was Belfast, in Northern Ireland. | Another major service hub was Belfast, in Northern Ireland. |
| “The airline was a significant economic driver for the region, carrying 1.6 million passengers to and from Belfast in 2019,” Brian Ambrose, chief executive of Belfast City Airport, said in a statement on Thursday. | “The airline was a significant economic driver for the region, carrying 1.6 million passengers to and from Belfast in 2019,” Brian Ambrose, chief executive of Belfast City Airport, said in a statement on Thursday. |
| Questions regarding regional connectivity and the impact on the local work force will need to be answered by the government in the coming days, but for Flybe staff who found themselves unemployed overnight, one question lingered: What now? | Questions regarding regional connectivity and the impact on the local work force will need to be answered by the government in the coming days, but for Flybe staff who found themselves unemployed overnight, one question lingered: What now? |
| “It’s really sad,” Katherine Densham, one employee, told Sky News amid tears on Thursday. | “It’s really sad,” Katherine Densham, one employee, told Sky News amid tears on Thursday. |
| “A lot of us have done this job straight out of college,” she said, “so I’m not really sure what we are going to do now.” | “A lot of us have done this job straight out of college,” she said, “so I’m not really sure what we are going to do now.” |