- This resurrection might pave the way for other airline bodies who’ve gone bankrupt during these 6-7 months
- Back in February 2019, Flybe was bought by a Virgin Atlantic-backed consortium and it was planned to be rebranded as Virgin Connect
- Flybe had been consolidating its domestic routes in an effort to stave off oblivion
THoD Newsdesk, UK: The Exeter-based Flybe, which folded its services back in March due to the crippled demands in flying and travel due to the coronavirus crisis, has been bought by a firm affiliated to a former shareholder. Reportedly, Flybe could be back in the skies next year.
This piece of news has come as a ray of hope for the aviation industry, which has been severely facing a precarious situation because of the raging pandemic. Flybe had been consolidating its domestic routes in an effort to stave off oblivion and to its credit, the airline had employed around 2,200 people and carried over 8 million passengers a year.
Back in February 2019, Flybe was bought by a Virgin Atlantic-backed consortium and it was planned to be rebranded as Virgin Connect. But on the 5th of March, this airline ceased trading, blaming the “significant impact on demand” caused by the coronavirus outbreak. The brand and its remaining assets, including intellectual property, stock and equipment, have now been vended to Thyme Opco, which is linked to a hedge fund that was a part of the Virgin Connect buy-out in 2019.
The EY administrator’s statement said, “While the transaction is still subject to certain confidential conditions, the deal is expected to allow the Flybe business to restart operations as a regional airline in the UK under the Flybe brand in early 2021. Following today’s announcement, the administrators will work together with Thyme Opco, the Flybe management team and the UK Civil Aviation Authority to prepare for the relaunch of Flybe’s airline operations.”.
A Thyme Opco spokesperson was further quoted saying, “We are extremely excited about the opportunity to relaunch Flybe. The airline is not only a well-known UK brand; it was also the largest regional air carrier in the EU, so while we plan to start off smaller than before, we expect to create valuable airline industry jobs, restore essential regional connectivity in the UK and contribute to the recovery of a vital part of the country’s economy.”
Flybe’s air operating licence had been previously revoked when it had entered administration but now it remains to be decided by the Civil Aviation Authority (CAA). The idea of relaunching an airline has been perceived as daunting by many bodies, as this sector has witnessed a huge downturn in air traffic. Most carriers have laid off about a third of their staff and have consistently reported huge financial erosions during this pandemic.
Speaking of the new pact, the pilots’ union, BALPA, stated, “A renewed Flybe would hopefully restore the vital air connections in the regions and nations of the UK and boost the economic recovery. Flybe staff were the first and most badly affected by the coronavirus crisis which has gone on to ravage the entire industry. This news will give everyone a degree of confidence that recovery is coming soon, and that their skills and knowledge are still going to be vital.”
This resurrection might pave the way for other airline bodies who’ve gone bankrupt during these 6-7 months. Virgin Australia, Avianca Holdings, LATAM and Compass Airlines, are some of the names who have been pushed to this dark abyss.
