LONDON—Collapsed UK regional carrier Flybe is to be wound down, after no buyers could be found for the failed airline.
The joint administrators of the Birmingham-based airline, David Pike and Mike Pink of insolvency specialists Interpath Advisory, said that “despite significant interest from a number of credible parties, it has not been possible to develop a transaction in the available time frame.”
The joint administrators will now commence the process of winding-down the business and identifying options in relation to the sale of specific rights, interests and assets.
Pike said on Feb. 15 that the joint administrators had held intensive discussions over the past two and a half weeks with a number of operators with a view to rescuing the airline and preserving the value in its assets.
“Unfortunately, there was a challenging set of circumstances at play, including the ‘use-it-or-lose-it’ rules related to slots, complexities with European recognition of a potential Temporary Operating License and the high costs associated with preserving the company’s operating platform, which meant there was a limited window in which a clear path forward could be set,” Pike said. “Furthermore, it was clear from the outset that there was only a limited number of parties who had the necessary strategic fit and who could navigate the complexities of such a transaction to get a deal over the line.”
Pike said, “It is with regret that discussions have now been brought to a close without a deal being agreed.”
The decision to close the carrier came just days after the administrators said they were applying to the UK CAA for a Temporary Operating License as part of their attempts to make Flybe a viable proposition for potential buyers. The CAA had not decided on whether to grant such a license at the time of the wind-down announcement.
The original Flybe was one of the first victims of the pandemic in March 2020. The airline had been teetering for some months but was pushed over the edge by the sudden collapse in ticket sales.
It was revived after its brand and assets were sold to Thyme Opco, a business linked to hedge fund Cyrus Capital. New York-based Cyrus Capital was previously part of a consortium that owned the airline alongside Virgin Atlantic and the now-defunct Stobart Air.
The latest incarnation of the airline launched commercial operations in April 2022, with Flybe’s first route connecting Belfast City (BHD) with its Birmingham (BHX) headquarters.
“We’d like to thank a number of stakeholders, including the CAA and the company’s lessors, who gave us the time and support we needed to ensure we were able to explore every available avenue to rescue the business,” Pike said. “We’d also like to thank those employees who have been working closely with us since our appointment, and who have worked with diligence and professionalism in this unsettling period.”
Pike said the joint administrators will continue to work with Flybe’s lessors in the coming days to return aircraft records to them. The administrators also pledged to continue to provide support to employees impacted by redundancy. “We are particularly grateful to those operators and other organizations across the aviation industry who have reached out to us directly to offer support in finding new roles for employees,” he said.
The original Flybe was the largest regional carrier in Europe, with a fleet of more than 60 De Havilland Canada Dash 8-400s. When it ceased operations for the second time in January, it operated eight Dash 8-400s.
The original Flybe was sole operator on around 80% of its routes, which were too thin to support a competitor. A major problem for the revived airline was that virtually all of the original Flybe’s routes had been snapped up by rivals following its 2020 demise.
