Flybmi goes into administration
Sunday, February 17, 2019
A new airline has filed for bankruptcy. This time the British company Flybmi has been shut down. The flights had already been stopped since the weekend before the declaration given on 16 February. It is worth noting that the company has pointed to the possibility of a no-deal Brexit as one of the reasons why it has had to stop operating.
Flight operations had to be stopped "with a sad heart" according to the airline. Rising fuel costs were the main cause of the insolvency but other factors came into play, in recent months, that lead to this decision being made. The uncertainty regarding its business partners and the number of passengers also had a negative effect.
Negative consequences of Flybmi's insolvency for passengers
The airline’s bankruptcy has not only meant bad news for the 376 Flybmi employees (not to be confused with Flybe by the way). Due to the sudden crisis, hundreds of passengers were stranded during the weekend. The airline advises passengers who can no longer board their flights to check whether their travel insurance covers the damages and extra-costs. Unfortunately, similar events in the past, for example with the bankruptcy of Monarch, point to passengers having to cover the costs themselves.
Passengers who are entitled to compensation under the European regulation on passenger rights are likely to be left empty-handed. In principle, they are entitled to a share of the insolvency assets; in practice, it is almost impossible for them to get a payment at all.
Subsequently, Flybmi is prohibited from paying passenger compensation claims because the insolvency petition has been filed. Therefore, we cannot accept any case against this airline from now on.