Flybe planes ‘are impounded at UK airports’ and passengers turned away amid fears the ailing airline has collapsed
Flybe planes ‘are impounded at UK airports’ and passengers turned away amid fears the ailing airline has collapsed.
Low-cost European carrier Flybe was facing collapse by the end of month and Wizz Air has revealed plans to slash routes, cut costs and freeze recruitment as part of measures to offset plunging demand amid the coronavirus outbreak.
Flybe, which has been hit by a slump in bookings due to the virus outbreak, was saved from going bust by the government earlier this year.
Flybe’s billionaire owners have sparked fury by asking the government to bail out the airline with a £100million loan
People briefed on the regional carrier’s situation told the Financial Times that the company only has enough resources to survive until the end of March.
As part of the January rescue deal, it agreed an arrangement to defer tax payments of ‘less than £10 million’ with HM Revenue and Customs. Ministers also agreed to hold a review into Air Passenger Duty (APD).
The structure of APD – which adds £26 to the price of most return domestic flights such as those operated by Flybe – could be altered in next week’s Budget.
Wizz Air – which focuses on the central and eastern European markets – said it will reduce flights from March 11 to countries affected by the virus – mostly to Italy – and is looking at cutting capacity by about another 10% between April and June.