Flybe goes into administration: what are your consumer rights?

5 March 2020

The crisis hit airline has blamed the collapse on the coronavirus outbreak

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UK airline Flybe has entered administration after the fall in bookings due the coronavirus outbreak proved to be the final nail in the coffin for the crisis hit firm.

On its website, the company says that all flights had been grounded and that the UK business had ceased trading with immediate effect.

It has warned travellers not to travel to the airport unless they have arranged an alternative flight.

The company narrowly avoided going bust at the beginning of the year but has continued to lose money.

In January, the Government announced it was stepping in to rescue the firm.

Flybe tried to broker a £100 million rescue deal, but after seven weeks talks broke down.

Europe’s largest regional airline partly blamed the impact of the coronavirus outbreak on the fall in bookings, which has made a “difficult situation worse”

In a statement Flybe’s chief executive Mark Anderson says the company had made “every possible attempt” to avoid collapse.

He says: “The UK has lost one of its greatest regional assets. Flybe has been a key part of the UK aviation industry for four decades, connecting regional communities, people and businesses across the entire nation.”

What to do

All flights have been cancelled and will not be transferred to another airline.

Passengers have been advised not to go the airport unless they have made alternative travel arrangements.

What if you are already on holiday?

When Monarch Airlines and Thomas Cook both collapsed the CAA was ordered by the Government to launch a repatriation operation to fly home passengers stranded abroad.

However, the CAA has said this time it will not be organising and repatriation flights this time as there is “capacity in the market for people to travel via alternative airlines”.

Are Flybe customers ATOL protected?

ATOL is a government backed scheme which offers financial protection to consumers when holiday firms collapse.

It covers package holidays that include flights and some flight only sales.

As Flybe is not ATOL protected, customers will not be financially covered for the collapse.

Will passengers be refunded money?

Passengers who have booked their flight with a credit card and paid over £100 will be protected under Section 75 of the Consumer Credit Act 1974 and should contact their card issuer for further information.

Some travel insurance companies will provide the cost of cancelled flights in the event of an airline collapsing, but this will depend on the policy.

Customers who purchased travel insurance that includes cover for scheduled airline failure (SAFI), should contact their insurer.

If you did not book directly with Flybe and purchased your tickets through a third party, you should contact your booking or travel agent.

Comments

The underlying reason...

A headline from not long ago:
'Sources said a combination of Brexit‎ and the Brexit-hit weaker pound leading to soaring fuel costs had hit Flybe'
Brexit pushed Flybe to the brink and it has now fallen into administration.

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