DALLAS – Hopes of a third incarnation of UK regional carrier Flybe (BE) have been dashed after the administrators revealed that the company would be wound down.
Interpath Advisory had applied to the CAA for a temporary operating licence. Reports suggested that both the Lufthansa (LH) and Air France-KLM (AF-KL) groups were in talks with the firm over a possible rescue.
No Deal Agreed
However, these talks have ended without success, and the airline will now be permanently grounded. In a statement, David Pike, managing director at Interpath, said, “Over the past two and a half weeks, we’ve held intensive discussions with a number of operators with a view to rescuing the airline and preserving the value in its assets. However, it is with regret that discussions have now been brought to a close without a deal being agreed.
“Despite significant interest from a number of credible parties, it has not been possible to develop a transaction in the available timeframe.”
“We’d like to thank a number of stakeholders, including the Civil Aviation Authority (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,” they added.
A further 25 employees of the Birmingham (BHX) based airline will now be made redundant on top of the 277 employees already laid off. Pike added that they will now support those affected by the collapse.
Featured Image: Flybe.