Normal operations as Flybe reportedly on brink of collapse

Flybe is reported to have entered into survival talks for emergency financing with the British Government amid financial difficulties.

Sky News reports that accountancy firm EY has been put on standby to help the airline through potential a type of bankruptcy if needed. The airline's large domestic network struggles to compete on some of its routes with road and rail land-based alternatives.

Related reading: To Flybe or not to Flybe: A review of Flybe's Dash 8 from Heathrow to Aberdeen

In a tweet on Sunday, Flybe implied that the news of its potential demise is only rumor and speculation.

As of Monday Jan. 13 in the afternoon, Flybe flights are operating as normal, and there is currently no sign of future cancellations.

Should the airline go under, passengers who purchased tickets directly through the airline would not covered by a British organization that refunds travelers. Passengers may be protected, however, if they booked through a tour company or travel agent.

Should Flybe go under, it would be a second devastating loss to the U.K. aviation industry in only a few months, following the collapse of Thomas Cook.

According to ITV, the Exeter-based airline, which operates 75 aircraft and employs more than 2,000 staff — is Europe's largest regional carrier, flying eight million passengers a year.

In 2019, the airline was bought by Connect Airways which is owned by Virgin Atlantic, Stobart Group and Cyrus Capital, and is due to be rebranded as Virgin Connect later this year.