Troubled British regional airline Flybe is expected to go into administration in the next few hours, according to reports.
The airline almost collapsed in January but was saved following a last minute intervention by the UK government which told the airline it would review air passenger duty.
The UK treasury said at the time that the loss-making carrier would continue operating after the review of the tax featured in rescue talks. Flybe’s shareholders had also confirmed they would pump in additional funds “alongside government initiatives” to keep the firm in business.
However, several reports in the UK media on Wednesday night, citing sources at the airline, said its collapse was imminent.
Flybe had been seeking a government loan to help it survive. The airline is owned by Connect Airways, a consortium created by Virgin Atlantic, Stobart Group and investment adviser Cyrus Capital.
It flies from Belfast City, Cork, Dublin and Knock to regional airports in England, Scotland and Wales.
Belfast City would be hardest hit should financial problems ground Flybe. The airline operates 14 services from there to destinations such as London, Edinburgh, Cardiff, Manchester, and Glasgow, along with other regional centres.
The airline’s collapse would also hit Knock airport in Co Mayo, from where Flybe flies to Birmingham, East Midlands and Manchester.
Flybe offers flights to Cardiff, Exeter and Southampton from Dublin and it serves Cardiff from Cork.
Irish airline Stobart, part of the Connect Airways group along with Flybe, operates services from Southend airport to the Isle of Man and destinations in France for the troubled UK carrier.
Should Flybe collapse, it would be the second high-profile failure in Britain’s airline and travel industry in six months.
Travel agent and airline Thomas Cook went into liquidation last September, leaving thousands of holidaymakers stranded.
Willie Walsh, head of the Aer Lingus parent company International Consolidated Airlines group, previously attacked the British government-backed rescue of regional UK airline Flybe, calling it a misuse of public funds.
Ryanair boss Michael O'Leary also lambasted Britain's bailout of Flybe, describing it as a breach of competition and state aid laws.
