Flybe is reported to have entered into survival talks for emergency financing with the British Government amid financial difficulties.Sky News reports that accountancy firm EY has been put on standby to help the airline through potential a type of bankruptcy if needed. The airline’s large domestic network struggles to compete on some of its routes with road and rail land-based alternatives.Related reading: To Flybe or not to Flybe: A review of Flybe’s Dash 8 from Heathrow to AberdeenIn a tweet on Sunday, Flybe implied that the news of its potential demise is only rumor and speculation.As of Monday Jan. 13 in the afternoon, Flybe flights are operating as normal, and there is currently no sign of future cancellations.Flybe-operated flights are still operating as of Monday afternoon. (Image courtesy of FlightRadar24)Should the airline go under, passengers who purchased tickets directly through the airline would not covered by a British organization that refunds travelers. Passengers may be protected, however, if they booked through a tour company or travel agent.Sign up for our daily newsletterEmail addressSign upI would like to subscribe to The Points Guy newsletters and special email promotions. The Points Guy will not share or sell your email. See privacy policy.Should Flybe go under, it would be a second devastating loss to the U.K. aviation industry in only a few months, following the collapse of Thomas Cook.According to ITV, the Exeter-based airline, which operates 75 aircraft and employs more than 2,000 staff — is Europe’s largest regional carrier, flying eight million passengers a year.In 2019, the airline was bought by Connect Airways which is owned by Virgin Atlantic, Stobart Group and Cyrus Capital, and is due to be rebranded as Virgin Connect later this year.
