Government confirms Flybe will continue to operate

A Flybe insider reports: "Business as usual and everything is operating as normal."

Ben Cordwell, travel & tourism Analyst at GlobalData, said:

News that Flybe is rumoured to be in rescue talks to secure additional funding comes as no real surprise as a number of British airlines have struggled to operate in an increasingly difficult environment in recent years.

British airlines have been hit hard by the combination of a post-Brexit referendum slump and larger airlines like easyJet dominating slots at several key regional airports.

GlobalData figures show that the number of airline seats sold in the UK increased by almost 70 million between 2014 and 2019. However, Flybe has found it difficult to compete, accounting for only 3.4 per cent of the total seats sold in 2018.

With GlobalData forecasting the total revenue of the British aviation industry to grow by over $13 billion between 2019 and 2022, it will be interesting to see if smaller airlines will continue to struggle or be able to take advantage of the growing market. However, it is difficult to see how they will turn it around and win market share from the likes of Ryanair and easyJet.

Meanwhile here's a Flybe plane landing in strong crosswinds:

What went wrong at Flybe, and what should ticket-holders do?

The Independent's Simon Calder has put together this handy explainer here:

https://www.independent.co.uk/travel/news-and-advice/flybe-collapse-bust-administration-atol-flight-virgin-atlantic-stobart-a9280941.html

The BBC's Ben Thompson has shared a letter that Flybe chief executive Mark Anderson sent to staff today:

Simon Calder, The Independent's travel correspondent, has put together a handy Q&A about travellers' rights amid ongoing Flybe rumours:

https://www.independent.co.uk/travel/news-and-advice/flybe-financial-failure-possible-collapse-passengers-stranded-virgin-atlantic-rights-a9281741.html

Specialist flight delay compensation law firm Bott and Co says that those affected by the potential Flybe collapse should: 

Investigate alternate flight options

Without scaremongering, it is advisable that anyone with a scheduled Flybe flight should look into alternative flights and have an idea of how much these will cost. 

Should the airline collapse, the government would work on assisting those stranded abroad in getting home in an operation similar to Operation Matterhorn, which was used to bring more than 150,000 Thomas Cook passengers back to the UK after it went bankrupt last year.  

Investigate alternate refund options

Any passengers who booked their Flybe flights as part of a package holiday through a UK travel agent will be covered by the ATOL protection scheme if the airline goes bust.This means the travel firm will be responsible for arranging alternative flights or providing a full refund. 

Those who have paid for their flights with a credit card may be able to recover their money, in full, under the Consumer Credit Act using Section 75. 

For flights which cost less than £100 or were paid for using a debit card, the Visa/MasterCard/Amex ‘chargeback’ system can potentially be used to recover the money paid. 

Not expect compensation for previous Flybe delays or cancellations

In reality, people who are currently in the process of claiming compensation for a flight delay, cancellation or denied boarding via EU Regulation 261/2004 are unlikely to receive it. Compensation claims falls to the bottom of the pile when an airline collapses, with money to secured creditors and airline staff coming first. 

"Thinking of the crew and staff of our little purple airline Flybe tonight and for the near future," tweeted self-proclaimed Avgeek Lucy Isabel. 

"They supply not only jobs in their immediate ring, but further afield, propping up those smaller airports. The UK wouldn’t have an airline with many domestic routes outside of LHR."

Stephen Farry, MP for North Down, calls Flybe's possible collapse "very worrying" for Northern Ireland.

The British Airline Pilots’ Association (Balpa) has called on the government to do "whatever it takes" to ensure Flybe carries on connecting the nations and regions of the UK.

Balpa’s general secretary, Brian Strutton said: “If Flybe didn’t exist, it would have to be invented. The airline plays an incredibly important role connecting the regions and nations of the UK and onwards to Europe.

“The importance of that regional connectivity cannot be overstated. Cities such as Exeter, Southampton, Birmingham and Cardiff rely extremely heavily on Flybe for their air links and for their economic prosperity.

"Northern Ireland, the Channel Islands and the Isle of Man would also suffer hugely if Flybe’s routes suddenly disappeared.”

“We understand that talks are ongoing. The government must recognise that the UK cannot afford to lose yet another airline, and the markets that Flybe serves cannot afford to lose their air connections which help businesses thrive. So we urge the Government to take every possible action to keep Flybe flying.”