Administrators of UK regional carrier Flybe are to wind down the company, after failing to reach agreement on selling the business.
Flybe filed for administration on 27 January.
Administrators had sought a temporary operating licence for the carrier while the possibility of rescue remained.
But “intensive” discussions with parties regarding a sale of the business have concluded without success, says Interpath Advisory which is handling the process.
“Despite significant interest from a number of credible parties, it has not been possible to develop a transaction in the available timeframe,” the joint administrators state, adding that 25 retained employees have been made redundant as a result.
The administrators will begin a winding-down process for the business and start identifying options for selling specific assets, rights and interests.
“Unfortunately, there was a challenging set of circumstances at play,” says Interpath managing director David Pike, one of the administrators.
He says these included the ‘use it or lose it’ regulations regarding the airline’s slots and “complexities” over European recognition of any potential temporary operating licence.
Pike adds that there were high costs associated with maintaining the company’s operations, limiting the timeframe for organising a rescue.
“It was clear from the outset that there was only a limited number of parties who had the necessary strategic fit and who could navigate the complexities of such a transaction to get a deal over the line,” he says.
Following the termination of discussions, leasing companies will have aircraft records returned to them. Flybe had been operating a fleet of De Havilland Dash 8-400s.
Pike says the administrators will also provide support to employees affected by Flybe’s cessation.