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Flybmi Collapse Sparks Concerns Over Future Of Derry Airport

Published on Feb 19 2019 10:09 AM in General Industry tagged: Trending Posts / City of Derry Airport / Flybmi / Loganair

Flybmi Collapse Sparks Concerns Over Future Of Derry Airport

British regional airline Flybmi has gone into administration and has cancelled all flights with immediate effect, the company said in a statement, blaming Brexit uncertainty as one of the reasons for its collapse.

A spokesperson for British Midland Regional Ltd said the company had taken the decision due to increased fuel and carbon costs as well as due to uncertainty arising from Britain's plans to leave the European Union on March 29.

News by Reuters, edited by Hospitality Ireland.

Derry Airport Fallout

The news has sparked concerns about the future of the City of Derry Airport due to the loss of a Flybmi route between Derry and London Stansted. With the loss of the route, the only services now operating out of Derry Airport are Ryanair services to Liverpool and Edinburgh and a Loganair service to Glasgow.

Potential Loganair Save

However, Loganair has expressed interest in potentially taking over the Derry to Stansted route in the wake of Flybmi's collapse.

The Scottish airline said it is awaiting details of the tender process relating to the route, which operates as a public service obligation. This means that the state can compensate an airline for losses made on a service deemed to be of economic importance to a region.

The Irish Times quotes a Loganair spokesperson as saying, "Loganair has an extensive track record of providing PSO services, and a strong understanding of the Derry market. We look forward to receiving details of the tender process as soon as possible."

According to the spokesperson, the majority of people who avail of the Derry to Stansted service are business travellers.

Government Pledge

As recently as last week, the UK government pledged to continue subsidising direct flights between Derry and London until May of 2021.

Article by Dave Simpson. Click subscribe to sign up for the Hospitality Ireland print edition.

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