EUROPE'S largest regional airline Flybe collapsed into administration last night, sparking fears for jobs as well as fierce criticism from unions and politicians.
The carrier had avoided going bust in January but has continued to lose money since. The company said a drop in demand caused by the coronavirus outbreak "made a difficult situation worse".
In the early hours of this morning Flybe announced it had ceased trading with immediate effect and that administrators had been appointed.
Crisis talks had been held yesterday in efforts to secure a rescue package. However, no deal was agreed.
All Flybe flights, and those operated by sister airline Stobart Air, have been cancelled, according to the Civil Aviation Authority (CAA).
The airline was bought by a consortium of Virgin Atlantic, Stobart Group and Cyrus Capital in February last year after running into financial problems.
READ MORE: Fears for struggling FlyBe as planes are impounded in Glasgow
The CAA said it had not yet been commissioned by the Government to operate flights to repatriate stranded travellers, as happened when Monarch and Thomas Cook failed. The body said there is "enough capacity in the market for people to travel via alternative airlines, rail and coach operations".
A Government spokesperson said it had asked coach and train operators to accept Flybe tickets and airlines to offer reduced fares "to ensure passengers can make their journeys as smoothly as possible".
At Glasgow Airport there was no sign of any Flybe passengers.
The departure board showed a raft of Flybe cancellations including the 6.50am flight to Birmingham, 7am flight to Belfast City and 7.10am service to Southampton, along with others later in the morning.
Passengers were advised to contact the airline.
People travelling with other airlines said they had heard about the Flybe collapse.
In a statement, chief executive Mark Anderson said the company had made "every possible attempt" to avoid collapse but had been "unable to overcome significant funding challenges".
"The UK has lost one of its greatest regional assets," Anderson said.
"Flybe has been a key part of the UK aviation industry for four decades, connecting regional communities, people and businesses across the entire nation.
"I thank all our partners and the communities we have been privileged to serve. Above all I would like to thank the Flybe team for their incredible commitment and dedication."
The company said all Flybe flights were immediately grounded and advised all passengers not to travel to airports unless alternative flight arrangements had been made.
Oliver Richardson, national officer for major airline industry union Unite, told the PA news agency: "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.
"While other European countries are able to introduce measures to keep airlines flying when they enter administration, the UK remains unable or unwilling to do so."
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