So based on the comments from the government that they have ensured Flybe are kept going to ensure connectivity regionally around Britain, does this mean that if it falls on it's face in a year that they should bail it out again?
The department of transport need to assess what airports need essential yet technically not commercially viable routes and provide a subvention, open to all parties to access. Sadly other airlines have been dead and buried and in my opinion many were as deserving of a lifeline as Flybe is. BmiRegional, is an example, AirSouthWest through the guise of Eastern Airways... the list goes on. Is BlueIslands going to be able to gain the same advantage if a buyer cannot be found?
As fair as I can see they've blamed a fleet of 195s for there losses up to now and thrown in APD to the mix. If they've burned through the £100M as suggested on Sky news yesterday, (the injection that came last year), they in effect had funds to cover this level of liquidity. This event is about liquidity and cash flow. It's not a seasonal business per se. I just cannot see what where these losses are coming from.
The tax payer in effect is paying for this as I cannot see what way this will be repaid as this business seems unviable.
The routes that are needed as essential air services should be provided for and beyond that any other service that is loss making should be canned. Do they make a return on volume routes like BHD BHX or MAN competing with easyJet? Is there a margin on these LCC penetrated routes? Will they stay on BHX to GLA and EDI and fly at a loss when easyJet commence operations on these routes? Seems illogical.