Grounded British carrier Flybe 2.0 is to be wound down after talks with potential buyers for the recently collapsed airline failed.
Joint administrators David Pike and Mike Pink of the Interpath Advisory, appointed by the UK High Court to oversee the sale or disposal of assets Flybe’s assets, confirmed in a statement on February 15 “it has not been possible to develop a transaction in the available timeframe”, despite “significant interest from a number of credible parties”.
In a further statement to Key.Aero, the administrators also clarified a further 25 employees have been made redundant with immediate effect, while a "small number" (circa 20) has been temporarily retained "to assist... with the winding down of the business."
David Pike managing director at Interpath and joint administrator of Flybe Limited, said: “Over the past two and a half weeks, we’ve held intensive discussions with a number of operators with a view to rescuing the airline and preserving the value in its assets.
“Unfortunately, there was a challenging set of circumstances at play, including the ‘use-it-or-lose-it’ rules related to slots, complexities with European recognition of a potential Temporary Operating Licence and the high costs associated with preserving the Company’s operating platform, which meant there was a limited window in which a clear path forward could be set.
“Furthermore, it was clear from the outset that there was only a limited number of parties who had the necessary strategic fit and who could navigate the complexities of such a transaction to get a deal over the line. We thank those parties for their engagement.
“However, it is with regret that discussions have now been brought to a close without a deal being agreed.
Pike confirmed that the firm will continue to work with lessors to return the aircraft records to them and will also continue to provide support to those employees who have been impacted by redundancy.