Finance Monthly April 2020 Edition

8 www.finance-monthly.com NEWS - MONTHLY ROUND-UP THE MONTHLY ROUND-UP News You Can’ t Af ford to Mi ss Flybe is the second major British airline to face bankruptcy in six months, fol- lowing the collapse of Thomas Cook last September that saw the loss of around 11,000 jobs. The UK-based airline has gone into ad- ministration, leaving 2,400 jobs at risk and disrupting the travel plans of hundreds of thousands of cus- tomers. After Flybe’s talks with the government failed to secure a deal for a rescue package, the compa- ny has declared that it will cease trading with immediate ef- fect. Flybe’s collapse fol- lows several months of financial troubles related to rising fuel costs and competi- tion from larger air- lines, compounded by a downturn in demand for flights due to the ongoing spread of novel coro- navirus. Flybe Chief Execu- tive Mark Anderson said in a statement that the company had been “unable to overcome significant funding challenges”. “The UK has lost one of its greatest region- al assets”, he added, thanking Flybe em- ployees for “their in- credible commitment and dedication.” Transport Secretary Grant Shapps tweet- ed his disappoint- ment in seeing Flybe go out of business after four decades of service. He assured his followers that the government is “ur- gently working with industry to identify how key routes can be re-established by other airlines as soon as possible”, and will also be working to help Flybe staff find new jobs. Flybe Collapses Following Slump in Demand