Flybe airline 'on brink of collapse', reports say

According to Sky News Flybe is on the verge of collapsing due to mounting losses.

When asked about the report, Flybe said it didn’t comment on rumor or speculation, while the UK government’s Department for Transport also declined to comment.

The airline operates from Leeds Bradford Airport but pulled out of Doncaster Sheffield Airport last year.Flybe was bought by Connect Airways, a consortium created by Virgin Atlantic, Stobart Group (STOB.L) and investment adviser Cyrus Capital last year.

Sky News said Flybe, which connects airports like Birmingham in central England to Paris as well as smaller European cities, was on the brink of collapse due to mounting losses and as Connect’s financing requirements had become more onerous.

Should Flybe collapse, it would be the second high-profile failure in Britain’s airline and travel industry in less than six months after Thomas Cook went into liquidation last September, stranding tens of thousands of passengers.

Sky News said the DfT was considering whether the government could provide any emergency financing for the company.

The DfT declined to comment. “We do not comment on speculation or the financial affairs of private companies,” a spokesman said in an emailed statement on Monday.

Flybe said: “Flybe continues to provide great service and connectivity for our customers while ensuring they can continue to travel as planned. We don’t comment on rumor or speculation.”