The majority of Flybmi’s unsecured creditors were airports in the UK and Europe, other airlines and aviation service companies, according to a creditors report by administrator BDO.
Overall, the regional airline had unsecured debts of around £37 million when it collapsed on 16 February. But unsecured creditors are only likely to get between 1p and 4p in the pound through the administration process.
Creditors included Rolls-Royce, which was owed £1.8 million for servicing, while £3.8 million in EU 261 flight delay compensation was also due to passengers at the time of Flybmi’s demise.
Other major unsecured creditors were regional aviation specialist Aerovision Aircraft Services, which was owed £1.3 million; Flybmi’s holding company Airline Investments Limited (£1.1 million); and sister airline Loganair (£138,000).
Alan Bowen, legal advisor to the Association of Atol Companies, said: “Unlike other failures such as Wow Air and Jet Airways, there was no sign of Flybmi’s impending collapse but clearly the business had become unsustainable despite the high fares it charged.”
Bowen added: “Flybmi was very important in the local areas it operated from, mainly business travellers booking through business travel agencies in Bristol and Scotland who relied on the airline.”