Flybe’s administrators, Interpath Advisory, has terminated talks with potential buyers, thought to have included Lufthansa and Air France KLM, which were both interested in its Heathrow slot portfolio.

Interpath said “discussions with parties regarding a sale of the business have now concluded”.

It added: “Despite significant interest from a number of credible parties, it has not been possible to develop a transaction in the available timeframe and, as such, the joint administrators will now commence the process of winding down the business and identifying options in relation to the sale of specific rights, interests and assets.”

The news means another 25 Flybe staff have been made redundant.

David Pike, Interpath managing director and joint administrator of Flybe Limited, said: “Over the past two-and-a-half weeks, we’ve held intensive discussions with a number of operators with a view to rescuing the airline and preserving the value in its assets.

“Unfortunately, there was a challenging set of circumstances at play, including the ‘use-it-or-lose-it’ rules related to slots, complexities with European recognition of a potential temporary operating licence and the high costs associated with preserving the company’s operating platform, which meant there was a limited window in which a clear path forward could be set.”

Pike continued: “Furthermore, it was clear from the outset that there was only a limited number of parties who had the necessary strategic fit and who could navigate the complexities of such a transaction to get a deal over the line. We thank those parties for their engagement.

“However, it is with regret that discussions have now been brought to a close without a deal being agreed."

Interpath had informed the CAA of its intention to apply for a temporary operating licence to revive Flybe, a move which was unprecedented. However, the application never got beyond the official filing with the authority.

A source close to the administration process told TTG there were issues over whether European authorities would recognise a temporary licence to allow Flybe to serve French and Swiss destinations. There was also another issue concerning slots, with it remaining unclear whether the carrier still held its summer slots under the "use it or lose it" rule.

Pike added the administrators would continue to support those who had lost their jobs, adding: “We are particularly grateful to those operators and other organisations across the aviation industry who have reached out to us directly to offer support in finding new roles for employees.”