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Flybe on the brink again


Manxberry

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Airport charges are monthly, so unless FlyBe have a special agreement that's new it won't be too much, unless the airport isn't chasing their arrears (which is entirely possible with the "I'm really into Russia, and I see you've got a Russian castle near the airport" bloke at the airport)

Wouldn't surprise me if FlyBe went pop, and the airport tried to impound the ATRs again though... 

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54 minutes ago, Manxberry said:

Airport charges are monthly, so unless FlyBe have a special agreement that's new it won't be too much, unless the airport isn't chasing their arrears (which is entirely possible with the "I'm really into Russia, and I see you've got a Russian castle near the airport" bloke at the airport)

Wouldn't surprise me if FlyBe went pop, and the airport tried to impound the ATRs again though... 

I think all FlyBe's planes are leased.

My feeling is that Flybe will be liquidated, assets sold off by administrators.

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2 hours ago, Derek Flint said:

In fairness, Branson et al are just circling the dying wildebeest. The eventually fatal injuries began to be inflicted about ten years ago. A succession of poor CEO’s, flawed strategy and some atrocious PR. The handling of baggage restrictions and high fares haven’t helped. 

If it does fold, It will be interesting to see who fills the void. This could cost IOMG dearly if they have to incentivise someone to come. 

Absolutely right Derek. The die was cast during the reign of Jim French, who had visions of turning them into a Europe wide 'regional airline' and committed them to buying large numbers of unsuitable aircraft, which contracts eventually cost a fortune to wriggle out of.

Then, bizarre decisions, such as, expanding into Finland (!!) and pouring cash, and resources, into a pointless a scrap with Loganair, over thin and marginal routes to the Scottish Islands, as revenge for pulling out of a  franchise agreement, and which cost them £ millions, showed them to be a poorly run company.

If they do go under, Stobart, flying in their own right, will be well placed to pick up Manchester and Liverpool, and perhaps, Birmingham.

easyJet could see the chance to add more consistent capacity to Liverpool too, and they might see it as an opportunity to have a go at Manchester. Demand would support two rotations a day, although we'd lose the very early departure. 

There'll be disruption, for sure, but, from IOM perspective, it probably the least harmful time of year, and it's likely that Stobart and easyJet would re-group, fairly quickly.

 

 

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Over the years I have found Flybe to be excellent and, well, too cheap. I can fly up and down UK for what it would cost me on the ferry to Liverpool. I am surprised it has lasted so long. There was one time we couldn't take off from BIrmingham, and delayed a couple of hours but I can handle that.

Flybe has served the Island well. 

(I have a work colleague who call it Fly-maybe. We all erm, laugh when he says that and he thinks he is the first one to have made the joke, and it is so funny no one tires of it. Well he certainly doesn't).

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28 minutes ago, asitis said:

I await the pronouncement from the director that we now have more destinations and the introduction of a microlight service to London Skegness airport !

Cynical Moi ? 

Somebody will be announced as "coming up trumps". Again.

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I use them weekly and their service is good. There are occasional delays but that happens to any carrier and I've never understood this "flymaybe" bullshit which is often spouted.

As a regular customer their demise would be difficult. Obviously for a bellend spouting insults on the internet, who doesn't actually use them, it would be much easier.

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2 minutes ago, gettafa said:

Over the years I have found Flybe to be excellent and, well, too cheap. I can fly up and down UK for what it would cost me on the ferry to Liverpool. I am surprised it has lasted so long. There was one time we couldn't take off from BIrmingham, and delayed a couple of hours but I can handle that.

Flybe has served the Island well. 

(I have a work colleague who call it Fly-maybe. We all erm, laugh when he says that and he thinks he is the first one to have made the joke, and it is so funny no one tires of it. Well he certainly doesn't).

 the cost of the ferry to liverpool is not really the standard for price comparisons.

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46 minutes ago, WTF said:

 the cost of the ferry to liverpool is not really the standard for price comparisons.

I shouldn't have used that comparison, and yeah, it is irrelevant.

I can fly to Aberdeen or London return for less than £100. 

I suppose if the business is there another company will take it on, but I have always found Flybe ok and affordable.

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59 minutes ago, piebaps said:

I use them weekly and their service is good. There are occasional delays but that happens to any carrier and I've never understood this "flymaybe" bullshit which is often spouted.

 

'Flymaybe' is used by people who think they have discovered a lovely little wittyism and when it is delayed (due to weather/volcanoes or whatever) they can stand at the Arrivals area spouting it. It's very funny.

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Query. Is the APD what we as passengers are charged? If so, how come Flybe has held on to it for so long? These seem to me to be huge sums. How come the (UK) Government lets Flybe sit on it for so long? Thanks for any replies.

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14 hours ago, Len Trench said:

Query. Is the APD what we as passengers are charged? If so, how come Flybe has held on to it for so long? These seem to me to be huge sums. How come the (UK) Government lets Flybe sit on it for so long? Thanks for any replies.

It is what we are charged and I don't know that Flybe are hanging onto to it any longer than other airlines do (I think it's meant to be paid monthly).  What they have actually asked for is to "be allowed to defer this year's estimated air passenger duty (APD) bill of £106m for three years" according to that latest Sky report.  The idea is to ease the cashflow over the winter - effectively they're asking for an interest-free loan.

Of course if Flybe does collapse, then the government will get no APD from Flybe at all, though in practice many passengers will transfer to other airlines, not all will or will be able to.  I should image that this point is being made to government ministers to encourage them to make this concession.  Technically they won't be spending money after all, just not collecting it for three years.

Of course it won't be just the UK government involved.  The Isle of Man Government also charges APD.  According to the air passenger figures for 2019, published only on Monday (was it something I said?), Flybe were responsible for 349,289 passenger flights to or from the Island in 2019 and these will nearly all attract APD at £13 a time - total of about £4.5 million.    Will Flybe want that deferred as well?  And might they also want other financial assistance?  Of course the Manx Government hasn't exactly got a good record of extracting money out of airlines that owe them.

Edited to correct: In actual fact APD loss to the IOM will only be half that I suggested above as roughly half the flights will be from the UK and so APD paid to them rather than IOM.

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