MIAMI- Following the administration status of Flybe (BE), UK’s Civil Aviation Authority (CAA) revokes its Operating (OL) and Route Licences in effect on April 30, 2020.
The removal, previously proposed by the CAA Consumers & Markets Group on March 5, means that the airline will not be able to cover its scheduled and charter operations.
Reasons to cease the validity of flights
As no investors appeared in light of the red numbers of BE in the last month, the carrier ended all operations and voluntarily suspended its Air Operator’s Certificate (AOC) due to its precarious situation.
Regarding this investment interest, CAA said today that currently there was no counterparty to fix the airline’s finances within a 12-month period. Consequently, a Temporary Operating Licence (TOL) was not issued for the entity as neither were the OL and subsequent Route Licenses.
No relevant change in BE’s position
At the moment the company filed for administration, UK authorities said that the carrier did not apply for a rescue package because it already had a deteriorated condition before the COVID-19.
Even if a potential funding for BE came in the form of slots sale at London Heathrow Airport (LHR) along with a government bailout, the CAA stated that those measures would not be relevant to a financial viability test.
Additionally, the UK government denied a bailout package for the avition industry, thus “there was no indication that any assistance would be forthcoming to an airline that was already in administration,” added the CAA.
Flybe’s position is now in dire straits, as the fallout of the pandemic continues create an unbrella of uncertainty among UK and other worldwide carriers that may or may not receive goverment aid as a result of their financial standing prior the crisis.