However, the state loan is now set to be rejected, it was reported today, with the carrier’s management clinging to hope of a cut to air passenger duty in the Budget next week, the Finacial Times reported.
Two months ago, the UK government announced a package of measures to help rescue Flybe, with the potential loan set to be part of this.
However, the carrier’s request has not met certain criteria set by the government, according to Whitehall officials.
The Exeter-based airline’s final airborne flights are expected to land at airports in the UK late on Wednesday evening, the BBC reports.
While financial problems were already apparent, a company insider told the BBC the impact of the coronavirus outbreak on the travel industry has “made a bad situation much worse”.
Nigel Frith, a senior market analyst at www.asktraders.com, tonight commented: “After narrowly avoiding collapse in January, rumours are rife that Flybe won’t last the evening.