Earlier, Hainan Airlines had to be "taken over" by the government because its business volume fell during the pandemic and its cash flow became insufficient.
The financial crisis brought on by operating difficulties is a challenge airlines around the world are facing this year. UK low-cost carrier Flybe had already been facing a funding crisis before the pandemic, and after COVID-19 spread across Europe, it had no choice but to file for bankruptcy protection.
British low-cost airline Flybe filed for administration on March 5 local time, and the COVID-19 outbreak may have been the final straw that pushed it over the edge. All of the company’s flights from March 5 onward have been canceled. Its official website advises passengers who already bought tickets, “Do not travel to the airport unless you have been transferred to an alternative flight operated by another airline.”This may be the first airline to go bankrupt as a result of the COVID-19 outbreak.
Flybe was Europe’s largest regional airline.
Flybe was the UK’s largest domestic route operator and also Europe’s largest regional airline. However, the company had been struggling for years, and it was acquired by Virgin Atlantic a year earlier. Even so, the acquisition failed to reverse its poor operating performance. Not long before this, Flybe had requested a £100 million loan from the UK government. In February, that request was rejected, extinguishing Flybe’s last remaining hope.
The news above is from The Paper.
Hopefully airlines can all make it through this difficult period.