Flybe’s failure serves as a reminder of the importance of regional airlines, says Travel Industry Experts’ Matt Purser
On January 28, a situation we were expecting for a while was confirmed when administrators were appointed and Flybe ceased all operations. Approximately 75,000 passengers had their flights cancelled and around 2,500 passengers were due to fly that day.
Flybe was once the largest regional airline in Europe, connecting passengers from smaller cities to major hubs across the UK and Europe. However, in early 2020, the company went into administration, leading to the collapse of the airline and the loss of thousands of jobs.
In 2020, reports emerged that a new company, Thyme Opco, had been formed to purchase the Flybe brand and relaunch the airline.
More: Rival airlines rally around to recruit displaced Flybe staff
In April 2021, the Civil Aviation Authority granted the new airline an operating licence enabling the carrier to operate both charter and scheduled services. The new company obtained 86 slots at Heathrow for the summer 2021 season, to be used for flights to Edinburgh and Aberdeen and had hubs in Birmingham and Belfast.
The failure of Flybe in 2020 and now in 2023 has far-reaching effects, both for its employees and for the communities it served. For the employees, the collapse of the company means the loss of their jobs, as well as their pensions and other benefits. This has a devastating impact on the lives of many people, who were suddenly left without a source of income and uncertain about their future.
For the communities that Flybe served, the loss of the airline is a major blow. Flybe was a major source of connectivity for many smaller cities and regional airports, providing a vital link to the rest of the UK and Europe. Without Flybe, many of these communities will be left isolated and without access to the wider world. This has a significant impact on local businesses, as well as on the local economy as a whole.
In addition to the impact on individuals and communities, the failure of Flybe has wider implications for the UK aviation industry. The company was a major player in the regional airline market, and its collapse leaves a gap in the market that will not be immediately filled. This could lead to increased competition among other regional airlines and result in higher prices for consumers.
In conclusion, the failure of Flybe has a significant impact on a wide range of stakeholders, including employees, communities, and the wider UK aviation industry. It serves as a reminder of the importance of regional airlines, and the need for support and investment to ensure their survival.
On top of this what does it mean for the Airline Insolvency Review? There have been doubts whether the recommendations from the Airline Insolvency Review would ever be implemented. Let’s hope it is now back on the agenda because we can’t continue to leave direct passengers of an airline exposed to their financial loss.