Flybe collapses after last-ditch talks with UK government fail

Flybe has collapsed after months of talks with the government failed to secure a crucial GBP100m loan and the deadly coronavirus slashed demand, pushing Europe’s largest regional carrier into bankruptcy in the early hours of Thursday morning. Flybe confirmed it had entered administration after holding last-ditch talks with the UK government on Wednesday, a move that puts more than 2,000 jobs at risk and raises uncertainty over scores of regional air routes within the UK.  “All flights operated by Flybe have been cancelled with immediate effect,” the airline said. “Europe’s largest independent regional airline has been unable to overcome significant funding challenges to its business. This has been compounded by the outbreak of coronavirus which in the last few days has resulted in a significant impact on demand.” EY is handling the airline’s administration.  “The impact of coronavirus has made a bad situation worse,” said a person close to the airline. “It has been in a pretty precarious position for a while — it doesn’t take much to push it over the edge.” A government spokesman said: “We are working closely with industry to minimise any disruption to routes operated by Flybe, including by looking urgently at how routes not already covered by other airlines can be re-established by the industry.” <br/>