Home Business NewsBusinessAviation News flybmi files for administration blaming Brexit uncertainty

flybmi files for administration blaming Brexit uncertainty

by Sarah Dunsby
17th Feb 19 10:37 am

British airline flybmi announced on Saturday evening that they have filed for administration, the airline blamed Brexit uncertainty for the collapse.

British Midland Regional Ltd which operates as flybmi has a total of 376 employees based in the UK, Belgium and Sweden, the company operated flights to 25 European cities.

All flights are now cancelled leaving hundreds of shocked passengers, 1,500 passengers were due to fly with the collapsed airline on Sunday.

Rory Boland, travel editor at Which? Said, “Some customers have claimed that tickets were being sold in the hours before the airline went bust, knowing full well those tickets would never be honoured, and passengers will rightly be outraged if this is proved to be the case.”

A statement on the fLybmi website said, “The airline has faced several difficulties, including recent spikes in fuel and carbon costs, the latter arising from the EU’s recent decision to exclude UK airlines from full participation in the Emissions Trading Scheme. These issues have undermined efforts to move the airline into profit.

“Current trading and future prospects have also been seriously affected by the uncertainty created by the Brexit process, which has led to our inability to secure valuable flying contracts in Europe and lack of confidence around bmi’s ability to continue flying between destinations in Europe.

“Additionally, our situation mirrors wider difficulties in the regional airline industry which have been well documented.

“Against this background, it has become impossible for the airline’s shareholders to continue their extensive programme of funding into the business, despite investment totalling over £40m in the last six years.

“We sincerely regret that this course of action has become the only option open to us, but the challenges, particularly those created by Brexit, have proven to be insurmountable.”

Passengers who had booked a flight with flybmi have been advised to contact their card issuer to get a refund or contact your travel agent.

Brian Strutton, general secretary of the British Airline Pilots’ Association (Balpa) said, “The collapse of flybmi is devastating news for all employees.

“Regrettably Balpa had no warning or any information from the company at all.

“Our immediate steps will be to support flybmi pilots and explore with the directors and administrators whether their jobs can be saved.”

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