UK Airline Flybe Dealt Final Blow By Corona Virus

British regional airline Flybe crashed into bankruptcy Thursday after the deadly coronavirus proved to be the final nail in its coffin

London, (UrduPoint / Pakistan Point News - 5th Mar, 2020 ) :British regional airline Flybe crashed into bankruptcy Thursday after the deadly coronavirus proved to be the final nail in its coffin.

The biggest operator of UK domestic flights said it has sunk into administration -- a last-ditch process aimed at salvaging at least some of the company.

And with the carrier long blighted by fierce competition, volatile fuels costs and a weak pound linked to the uncertainty over Brexit, Flybe's announcement to ground all flights now places some 2,000 jobs at risk.

An airline source told Britain's domestic Press Association news agency that sliding demand owing to COVID-19 had "made a difficult situation worse".

A slew of airlines -- including British Airways and Ryanair -- announced Monday the cancellation of several hundred flight, in particular to Italy, as the novel corona virus spreads throughout the globe.

Flybe narrowly avoided going bust in January when the UK government agreed to review air passenger duty paid by its customers -- and shareholders pledged extra investment.

But in the early hours of Thursday, the carrier appointed administrators after the government reportedly refused a rescue loan for 100 million ($128 million, 115 million Euros) "Flybe entered administration on 5 March," the carrier said in a brief statement.

"All flights have been grounded and the UK business has ceased trading with immediate effect." The Exeter-based carrier failed to turn around its fortunes since it was purchased just over a year ago by a consortium led by Virgin.

"Flybe's financial difficulties were long-standing and well documented and pre-date the outbreak of COVID-19," said a government statement.

Flybe, which flies about eight million passengers annually, is owned also by investment firm Cyrus and infrastructure specialist Stobart.