Chief executive Anderson said Flybe had been “unable to overcome significant funding challenges to its business”.

“This has been compounded by the outbreak of coronavirus which in the last few days has resulted in a significant impact on demand,” said Anderson after Flybe collapsed into administration during the early hours of Tuesday morning (5 March).

It comes just two months after a rescue deal was purportedly agreed with government to ease the financial pressures on Flybe, a key player in the UK’s regional connectivity, and a year after the airline was rescued from the brink of collapse by Virgin Atlantic-led consortium Connect Airways.

“Flybe has been a key part of the UK aviation industry for four decades, connecting regional communities, people and businesses across the entire nation,” said Anderson.

“I thank all our partners and the communities we have been privileged to serve. Above all I would like to thank the Flybe team for their incredible commitment and dedication.”

‘Worrying time’

In a statement, the Department for Transport (DfT) said: “We recognise the impact this will have on Flybe’s passengers and staff. Government staff will be on hand at all affected UK airports to help passengers.

“The vast majority of Flybe routes are served by different transport options, and we have asked bus and train operators to accept Flybe tickets and other airlines to offer reduced rescue fares to ensure passengers can make their journeys as smoothly as possible.”

The statement added: “We know this will be a worrying time for Flybe staff, and our Jobcentre Plus Rapid Response Service stands ready to help them find a new job as soon as possible.

“We are working closely with industry to minimise any disruption to routes operated by Flybe, including by looking urgently at how routes not already covered by other airlines can be re-established by the industry.”

Virgin Atlantic, in a statement, said the Connect Airways consortium had invested £135 million in Flybe since it took over the business in January 2019, and cited the impact of coronavirus on Flybe’s trading for its decision to pull its financial support.

“We are deeply disappointed Flybe has been unable to secure a viable basis for its continuing operations and has therefore entered administration,” said Virgin.

“Virgin Atlantic, along with Stobart Group and Cyrus Capital Partners, formed the Connect Airways consortium which intervened in 2019 to prevent the collapse of Flybe and keep Europe’s largest regional airline flying.

“With customers and staff at the front of our minds, over the past 14 months, the consortium has invested more than £135 million to keep the airline flying for an extra year, maintaining 2,400 people in employment and ensuring customers could keep travelling.

“This amount includes approximately £25 million of the £30 million committed in January 2020, alongside a Time to Pay arrangement with HM Treasury for Air Passenger Duty to the value of £3.8 million.”

The carrier added: “Sadly, despite the efforts of all involved to turn the airline around, not least the people of Flybe, the impact of Covid-19 on Flybe’s trading means that the consortium can no longer commit to continued financial support.

“As a priority we are looking at options to provide support to Flybe staff and to assist affected customers.”