London (AFP)

The British regional airline Flybe announced early Thursday that it has ceased operations "with immediate effect", short of cash and unable to cope with the epidemic of new coronavirus which has put a brutal brake on air traffic in the world.

"All the flights are grounded and activity in the United Kingdom has ceased with immediate effect," the company said in a statement after escaping bankruptcy in January thanks to a tax boost from the government of Conservative Prime Minister Boris Johnson.

Flybe urged passengers who had booked a flight with the company "not to go to the airport", saying he could not find an alternative flight for them.

Flybe, which employs more than 2,000 people, transports around 8 million passengers a year to 170 European destinations. It is also the main carrier at regional British airports such as Aberdeen, Belfast, Manchester or Southampton.

Flybe has tried "as hard as it can," but has proven to be "unable to overcome significant funding challenges," said general manager Mark Anderson. The epidemic of new coronavirus, which led to a significant drop in reservations, precipitated its fall.

"The United Kingdom has lost one of its greatest regional assets," he added. "Flybe has been a key part of the UK aviation industry for four decades, bringing together regional communities, people and businesses across the nation."

Directors of the accounting firm EY have been appointed.

- Angry union -

Connect Airways, the consortium that owns Flybe, which includes Virgin Atlantic and the Stobart and Cyrus funds, had already saved Flybe from bankruptcy over a year ago, but failed to bring it back to profitability.

The announcement came after British media said the company could run out of cash if it didn't get a £ 100m government loan.

After the rescue plan announced in January by the British government, which also promised to revise taxes on air tickets during the budget to be published on March 11, competitors of Flybe Ryanair and IAG, parent company of British Airways had protested against what they considered to be anti-competitive and illegal subsidies.

The government had justified its choice to rescue Flybe by the importance of the company in domestic services and the economic life of many regions.

This time, the executive chose not to intervene, angering the Unite union, which blamed it for not having "learned the lessons" from the resounding bankruptcy of tour operator Thomas Cook last year and the Monarch airline in 2017.

"The British economy is highly dependent on a viable regional airline," said the union. The fact that the government is doing nothing, "especially as we face the uncertainties of the Covid-19 virus and the changes brought about by Brexit," is "irresponsible," he said.

In a statement, the government said it was "on hand" to assist the affected passengers.

"The vast majority of Flybe routes are served by other means of transport, and we have asked bus and train operators to accept Flybe tickets and other airlines to offer reduced fares to allow passengers to travel as harmoniously as possible, "added a spokesperson.

The executive said it is also studying the possibility of restoring routes that are not already provided by other airlines.

© 2020 AFP