(Adds company background, company declining to comment)
LONDON, March 4 (Reuters) - British regional airline Flybe
is due to go into administration in the next few hours, a source
told Reuters on Wednesday, as the already struggling carrier
failed to withstand the plunge in travel demand caused by
coronavirus.
Accounting firm EY is due to be called in to handle the
administration, a form of creditor protection, once Flybe's
aircraft are all back on the ground from flying later on
Wednesday, said the source familiar with the situation and who
spoke on condition of anonymity.
A representative for Flybe declined to comment on the
possibility of administration or the airline's longer-term
financial situation.
Flybe had been seeking a government loan to help it survive
but its failure would put 2,000 jobs at risk and cause a
headache for Prime Minister Boris Johnson and his plan to boost
regional transport links.
The airline, which connects smaller UK cities like
Southampton and Manchester, was rescued from near collapse in
mid-January, when its shareholders agreed to invest more money
alongside UK government support for the airline.
In the weeks since then, however, airline bookings across
the world have plunged as people have decided not to travel due
to worries about coronavirus, as Italy grapples with the biggest
outbreak in Europe, and the number of UK cases rises.
Flybe's current owners are Connect Airways, a consortium
created by Virgin Atlantic, Stobart Group and Cyrus
Capital, which have invested 110 million pounds ($141.6
million)since buying it last year.
($1 = 0.7770 pound)
(Reporting by Sarah Young in London
Editing by David Milliken and Matthew Lewis)
