Flybmi blames Brexit uncertainty for collapse

Flybmi, formerly known as British Midland Regional, has gone into administration blaming Brexit uncertainty and higher fuel prices.

A statement from the regional airline said the ‘unavoidable’ decision had been made ‘with a heavy heart’.

"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," said the statement.

"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 six years."

Bmi Regional employed 376 staff in the UK, Germany, Sweden and Belgium.

BALPA general secretary Brian Strutton said: "The collapse of Flybmi is devastating news for all employees. Regrettably BALPA had no warning or any information from the company at all. Our immediate steps will be to support Flybmi pilots and explore with the directors and administrators whether their jobs can be saved."

The Civil Aviation Authority is advising passengers who booked flights with a credit card to contact their card issuer to claim a refund under Section 75 of the Consumer Credit Act.

"Similarly, if you paid by debit or charge card you should contact your card issuer for advice as you may be able to make a claim under their charge back rules," it said.

Alternatively, passengers might be able to claim under their travel insurance if it includes scheduled airline failure cover (SAFI). "The type of protection provided may vary depending on the type of policy taken out. A policy may simply cover the cost of the original tickets purchased or any unused portion, or the additional cost of purchasing new flights, such as new tickets for travel back to the UK," said the CAA.

A ‘negative response letter’ to enable passengers to make a claim will be published by the CAA shortly.

Those who booked via a travel agent are being advised by the CAA to contact their intermediary. "If you have booked flights or a trip that includes flights with a travel firm that holds an ATOL (Air Travel Organiser’s Licence) and received confirmation that you are ATOL protected, the travel firm is responsible for your flight arrangements and must either make alternative flights available for you so that your trip can continue or provide a full refund," said the CAA.

"If you are abroad, it should make arrangements to bring you home at the end of your trip. Contact the ATOL travel firm for more information."