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Flybe has entered into administration, with around 2000 jobs at risk, while Ernst & Young have been appointed as administrators over the company. 

The company had previously been in the news due to financial struggles which saw it seeking dispensation regarding a £100m air passenger duty bill.

This was made worse by the impact of the spread of coronavirus, which appears to be stopping people from booking holidays or other trips, the lifeblood of any airline. 

Assessing The Current Situation

“It is of course extremely disappointing for employees at Flybe, who are now facing an uncertain future, as well as those who had already booked flights with Flybe who now find themselves having to find alternative routes.”

“It is important to note, however, that Flybe has entered administration rather than liquidation. The administrators at Ernst & Young will be looking at the best option to secure the position of Flybe’s creditors, which will include looking at all options regarding the planes and routes Flybe currently operates.”

"Flybe was recently purchased by a group which included Virgin Atlantic, who collectively put over £100m in to the regional airline in an attempt to keep it running. This was vital as Flybe operated a number of important regional routes within the UK."

“The pressures of the current situation have finally told on Flybe, but the administration process is not a final nail in a coffin, but rather may offer a lifeline to the important services offered by Flybe,” Mr Lloyd continued. “We will have to continue to monitor the situation over the coming weeks, but it is likely that there will be some interest in the routes, planes, and hopefully staff, which are now under the control of the administrators.”

Administration and Insolvency Can Affect All Businesses

Business pressures can affect businesses of all sizes, and you do not need to be an airline to look at how insolvency procedures might help you and your business in obtaining the best position for your creditors and continuing to operate.

If you would like to discuss how our experts can assist you in relation to your business needs, please contact us at Howells Solicitors on 02920 404020 to discuss.

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