(TAN): British airline Flybe collapsed earlier this week driven by a dip in demand caused by the coronavirus outbreak, reports said.
According to reports, Europe’s biggest independent regional airline shut down abruptly, creating chaos for passengers who were booked to travel with the carrier.
Flybe grounded all flights and stopped all trading “with immediate effect” after it went bankrupt, a message on its website said.
[ALSO READ: Tourism Ireland’s new online video urges travellers to discover the islands of Ireland]
“If you are due to fly with Flybe, please DO NOT TRAVEL TO THE AIRPORT unless you have arranged an alternative flight with another airline. Please note that Flybe is unfortunately not able to arrange alternative flights for passengers,” the statement further said.
The airline, which was reportedly undergoing financial issues for months, finally succumbed to dropping demand for travel over the coronavirus – demand has plunged not just from vacationers, but also from corporate flyers as companies have cancelled or deferred business trips, reports said.
International Air Transport Association, the trade association for the world’s airlines, recently said global airlines could face a combined revenue loss of USD 113 billion if the coronavirus continues to spread and disrupt travel, as per reports.
[ALSO READ: VisitScotland launches new ecotourism guide, advises visitors to skip Edinburgh Castle]
While several major carriers cancelled flights to and from mainland China owing to travel restrictions and a dearth of demand from passengers, transatlantic flights and those within Europe and the United States were also cancelled, according to reports.
Lufthansa cancelled 7,100 flights to European destinations for this month accounting for nearly a quarter of its total capacity. Most of the flights it cancelled are high-frequency connections within Germany or flights that serve Italy.
Paul Charles, a former director of British airline Virgin Atlantic, reportedly said other airlines could soon meet the same fate as Flybe owing to the coronavirus.
[ALSO READ: COVID-19: UNWTO calls on tourism to be part of recovery plans]
“You’re going to see massive consolidation within six months’ time. Management teams at airlines at the moment are entirely stretched because of coronavirus. You’re not going to see anyone else come in and try and replenish the network or fill the void left by Flybe,” he was quoted by BBC News as saying.
Many airlines are reportedly economising by asking employees to take unpaid leave or pay cuts. While Emirates has asked staff to take unpaid leave for up to a month, Cathay Pacific asked employees to go on an unpaid leave of three weeks, reports said.
