• FlightBmi

Brexit uncertainty leads to Flybmi filing for administration

The UK Airline announced yesterday afternoon (16th February 2019) that the group has filed for administration cancelling all flights.

Flybmi is a regional UK airline based near East Midlands airport. They operate 17 aircraft to 25 destinations in Europe. They have 376 staff. Last year the airline carried 522,000 passengers on 29,000 flights.

This against a backdrop of increased financial pressures on small regional airlines. The shareholders invested £40 million into the group in the last six years but have been reluctant to continue funding the airline in the current economic circumstances that have been exasperated by Brexit difficulties.

Flybmi have issued the following advice

Customers with bookings should contact their bank or payment card issuer to initiate the process of obtaining a refund. If Customers have booked through Lufthansa, Brussels Airlines or another airline or code partner or a booking agent Customers should contact them directly. Customers who have travel insurance should contact their travel insurance provider to understand if they are eligible to claim for cancelled flights and the procedure for doing so.

A spokesperson for Flybmi issued the following statement:-

It is with a heavy heart that we have made this unavoidable announcement today. 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.

Our employees have worked extremely hard over the last few years and we would like to thank them for their dedication to the company, as well as all our loyal customers who have flown with us over the last 6 years.

EU261/2004 Flight Compensation claims

We at Flight Delay Pay have several ongoing claims with Flybmi where the compensation has been agreed. What happens now? We will, once an Administrator has been appointed, make them aware of the firms liability towards our claimants. It will then be a waiting game whilst the Administrators work out the assets and liabilities of the company. The Administrators will be looking to maximise value for the shareholders and other creditors. This will either lead to the sale of the group as a whole being their assets and liabilities which would be the best result for our claimants. The other alternative is that the Administrators will be forced to simply sell off the company’s assets being aircraft routes etc.

All Flight Delay Pay customers who have submitted a FlyBmi with us will be contacted soon with an update.

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