British regional airline Flybe stated early Thursday it entered into administration, as the already struggling carrier didn’t face up to the fall in travel demand caused by the coronavirus.
The airline’s failure puts 2,000 jobs in danger and causes trouble for PM Boris Johnson and his plan to lift local transport links.
A UK government spokesperson stated the federal government was working closely with the airline sector to reduce any disruption to routes operated by Flybe.
Flybe is among the first airways to exit the industry since the emergence of coronavirus, which surfaced in China in 2019 and has since claimed about 3,000 lives and sharply reduced travel demand.
Some major airways have stated they will need to pare costs to weather the downturn in bookings, significantly since late last month when Europe’s worst epidemic emerged in Italy.
The airline, which links smaller UK cities, was rescued from near-collapse in mid-January when shareholders agreed to invest more money alongside the UK government’s backing for the airline.
Flybe’s existing owners are Connect Airways, a group created by Virgin Atlantic, Stobart and Cyrus Capital. The coalition has invested 110 million pounds ($141.6 million) since buying Flybe last year.
Flybe had been pinning hopes for survival on a government loan plus a discount in air passenger duty, a tax charged by Britain on flights; however, help didn’t come in time, which means that its regional routes in Britain are now in danger.
PM Johnson stated January that Flybe was vital for Britain’s transport and that the government would do what it could to support the carrier.