UK airline Flybe collapses

British airline Flybe has entered administration, it announced on Thursday morning. The company had been under pressure for months and almost folded in January.

"All flights have been grounded and the UK business has ceased trading with immediate effect," the airline said.

It was warned passengers not to come to the airport for flights.

A drop in customers caused by the global outbreak of coronavirus helped cause the collapse, according to the British Press Association.

Crisis talks were held late on Wednesday, but the budget airline could not pull through. The company's website had earlier stopped functioning, instead showing an error message.

Read more: Coronavirus set to infect global airlines' fragile health

Bailout talks not successful

The company employs 2,000 people. It carries flights across Europe as well as domestically within the UK.

In 2019, the carrier was bought by a consortium of companies including Virgin Atlantic. The multinational said it would pour 30 million pounds (€35 million, $39 million) into the business.

But the airline's financial woes were not over and the company already faced bankruptcy in January. Flybe had been in negotiations with the British government about receiving a 100 million pound bailout loan, but the terms were yet to be agreed.

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ed/aw (dpa, Reuters, AFP)