biddedout, I'm afraid that any hope you might have of this helping the staff and creditors including pensioners is somewhat forlorn. Cyrus Capital held security to Flybe's slots so if there is any value realized by being able to transfer slots from Flybe 1.0 to Flybe 2.0 then it will only be to Cyrus.
I wouldn't be so sure about TUPE. The CAA thing makes it clear that it is a transfer of business being undertaken here, and it is possible that employment rights can be protected in such a situation despite insolvency. The legislation is pretty complicated, but I don't think you can say with certainty that TUPE doesn't apply. It might - or might not.