UK’s Flybe collapses as coronavirus cuts its flights beyond normal

flybe

Uk’s regional airline, Flybe has filed for bankruptcy after the airline saw a plunge in its demands. The airline is perhaps the first carrier to shut down as the impact of the Coronavirus weighs down on airlines across the world.

According to a report by Reuters, the failure of an airline that connects all corners of the United Kingdom with major European destinations not only puts around 2,400 jobs at risk but could also see some airports struggle and business travel restricted.

“All flights have been grounded and the UK business has ceased trading with immediate effect,” Flybe was quoted by Reuters after the government walked away from a rescue package agreed in January.

Flybe’s collapse also causes a problem for Prime Minister Boris Johnson who had promised to “level up” Britain by investing in regional transport links.

The operator, described as the largest independent regional airline in Europe, carried around 8 million passengers a year between 81 airports and was owned by a consortium of Virgin Atlantic, Stobart Group (STOB.L) and Cyrus Capital.

It becomes the first major airline to go out of business since the emergence of coronavirus, which surfaced in China last year and has since claimed around 3,000 lives.

Airlines are racing to cut costs by canceling flights to weather a downturn that has worsened since late February when Europe’s worst outbreak emerged in Italy.

British Airways, easyJet, Lufthansa and United Airlines are amongst those announcing cost-saving measures.

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