Saturday, 27 April 2019

FlyBMI 'owed £37 million' when it collapsed.

The administrators of the collapsed UK regional airline FlyBMI say the firm owed £37 million at the time of its downfall. 

The airline operated thin slim routes between a number of UK secondary regional cities and key gateway destinations in Europe, including Brussels, Frankfurt and Munich. Whilst it was held in high regard by many business passengers, many of FlyBMI flights departed with less than half the seats sold. 

According to the administrators BDO, the airline was worried about Brexit, "The company was also becoming increasingly concerned about the potential impact of Brexit and the ability to conduct intra-European flying whilst operating under a UK Operators Certificate.".

FlyBMI was owned by Airline Investments Limited (AIL) run by aviation entrepreneurs Peter and Stephen Bond, who also own Loganair, the Scottish airline that has reaped huge benefits of its sister airlines demise. 

Loganair has taken over several of FlyBMI routes and important contracts, including a lucrative Derry - London route. It has also taken over the very lucrative airport slots at many airports, some of which it is offering for sale. These slots were "transferred" from FlyBMI to Loganair just before the administrators were appointed, BDO says AIL did this to prevent "the airports seeking to cancel them". It also prevents the administrators from selling them on to recoup some money to pay back to the many creditors of FlyBMI.

FlyBMI operated 17 aircraft at the time of its collapse, according to BDO 14 of those were detained after the administration was instigated for unpaid navigation charges and fees. 15 of those aircraft have been transferred to Loganair. 

London Stansted Airport and Bristol Airport were both owed money by FlyBMI as well as Rolls Royce, which according to BDO was owed £2.25 million for a servicing contract. Also, when FlyBMI filed for administration its passengers were due some £3.8 million in compensation for late and cancelled flight. The administrators say that most creditors, passengers and suppliers are unlikely to receive any more than 1% of what they are owed.

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