Failed Flybe was ‘losing millions per month’, say administrators, as total deficiency tops GBP82m

Birmingham-headquartered Flybe was losing an average of up to GBP5m during each month of its brief existence, the administrators of the collapsed UK regional carrier have disclosed. On the back of those losses and outstanding loans or credit facilities, the airline’s total deficiency is over GBP82m. Flybe entered administration and ceased all flights on 27 January, having only commenced operations the previous April. An attempt to resurrect the Flybe brand following the failure of its predecessor in March 2020, the latest incarnation had ambitious plans to create a thriving regional aviation business with bases at Birmingham, Belfast International and Glasgow, but also with a presence at hub airports London Heathrow and Amsterdam Schiphol, alongside other UK sites. Flybe was owned by Thyme Parentco, a UK-registered holding company, the majority of whose shares were in turn held by DLP Holdings – a Luxembourg-based fund associated with Cyrus Capital, the owners of the original Flybe at the time of its collapse. Flybe acquired the assets of its predecessor for just £1. But detailing the collapse in their statement of administrators’ proposals, Mike Pink and Amy Rose from Interpath Advisory reveal that Flybe struggled virtually from the moment it was relaunched. Initial funding in the form of a GBP20m loan was received from DLP and GBP20m in equity from its shareholders, of which DLP was the largest. On top of which, DLP provided a GBP5m credit facility, which was not initially drawn. “At the time the financing package was agreed it was forecast this would be sufficient for the company [Flybe] to bridge to become financially self-sustaining,” the report says. But procuring aircraft proved challenging: when Flybe began operations in April 2022 it had secured just two leased De Havilland Canada Dash 8 twin-turboprops. <br/>