The comeback of the regional airline Flybe lasted less than a year. Now the lights finally seem to be going out, because the two insolvency administrators see no way of saving the highly indebted company.

The first Flybe had to file for bankruptcy on March 4, 2020 and cease flight operations. Some assets were taken over by Thyme Opco, but the resumption of flight operations was delayed for various reasons. On the one hand, there were many legal issues to be clarified and on the other hand, the unclear situation regarding Corona did not make things any easier. In April 2022 the time had come: The new Flybe Limited took to the air again.

As early as January 28, 2023, i.e. less than a year later, it was already over again. The carrier had to stop flight operations again and file for bankruptcy. Before that, there were some signs that things might be going wrong, with leased aircraft repeatedly being handed over late or not at all. In retrospect, this could well have been an indication of the lack of liquidity of the "new Flybe".

The insolvency administrators first tried to find a buyer and initially it looked as if Lufthansa and/or Air France-KLM might be interested. However, both companies would not have wanted to have a regional carrier in the UK, but to get coveted slots in London-Heathrow and/or Amsterdam. Nobody has struck, so that the liquidation had to be initiated.

The debt of the bankrupt airline amounts to around 82,6 million pounds. But that already takes into account around £6,5m in cash and £62.000 in recoverable deposits that had to be deposited with suppliers. The report by the bankruptcy administrators shows that they do not consider Flybe to be salvageable or reorganizable given the high level of over-indebtedness and the fact that no investor is interested in a takeover.

With regard to the payment to the creditors, the insolvency administrators stated that DLP Holdings would not be paid out in full, but that the senior and secondary creditors would be fully compensated. Unsecured creditors should receive a small quota. The amount of this cannot yet be predicted.

Slots were "rented" from British Airways

At the time of filing for bankruptcy, Flybe Limited had nine de Havilland Dash 8-400s. Another machine was in the preparatory phase. It was all about leasing machines. The bankruptcy trustees believe that the late handover of aircraft had a negative impact on its reputation and finances as announced routes could not be served.

The insolvency administrators were also unable to make money from the coveted take-off and landing rights in Amsterdam and London-Heathrow. During the course of the proceedings, it turned out that these were not owned by Flybe at all, but had been rented by British Airways. So these are back at BA and the IAG subsidiary can now use them itself or is in danger of losing them. Given the high demand at the moment, it is likely that British Airways will quickly start operating the slots.