Flybe to collapse?

Flybe, Britain’s biggest domestic airline, has warned the government it could collapse within days after a slump in bookings triggered by the coronavirus.

Sky News has learnt that Flybe has renewed a plea for ministers to provide emergency financial support, even as ongoing talks about a state loan on commercial terms appear to have been rejected.

Sources said on Wednesday that there was a possibility that Flybe could fall into administration within a matter of days, although "last-ditch" discussions involving its shareholders and the government were continuing.

One insider said the chances of the airline surviving until a promised review of Air Passenger Duty (APD) charges in next Wednesday's Budget now looked "more remote".

The outbreak of the coronavirus, which has hit hundreds of airlines around the world, has prompted a "collapse" in bookings at Flybe.

The airline, which is part-owned by Sir Richard Branson's Virgin Atlantic, is said to have requested additional government support in recent days to mitigate the impact of Covid-19.

Its other shareholders are Stobart Group, a listed infrastructure company, and Cyrus Capital Partners, a hedge fund.

Flybe declined to comment.