What to do if you are a Flybe employee or passenger

Edmund HeaphyFinance and news reporter
Yahoo Finance UK
A flight departure shows cancelled Flybe flights at Belfast Airport on Thursday. (David Young/PA via AP)
A flight departure shows cancelled Flybe flights at Belfast Airport on Thursday. (David Young/PA via AP)

The UK government on Thursday issued advice for employees and passengers of Flybe, after the airline collapsed into administration in the early hours of the morning.

Some 2,400 jobs at the airline are now at risk following the move, while thousands of passengers are faced with flight cancellations.

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Last-ditch talks with the UK government failed to help Flybe secure a £100m ($127m) loan required to bolster the flagging regional airline, which was pushed to the brink by the coronavirus fallout.

Are you entitled to redundancy pay?

If you worked for Flybe under an employment contract for at least two years and you live in England, Scotland, or Wales, then you can apply to the government’s Insolvency Service for redundancy pay.

You will also be entitled the holiday pay you accrued for the leave you were entitled to take, but have not yet taken, as well as unpaid wages, overtime, and commission.

You are also entitled to pay for leave you have taken, but not yet been paid for.

READ MORE: Coronavirus pushes flagging Flybe into collapse, risking 2,000 jobs

The Insolvency Service caps each of its payout in the respective categories at £525 a week.

You will also be entitled to statutory notice pay if you worked for Flybe for at least one month.

The Insolvency Service can pay you one week’s notice for every full year you were employed at the airline, up to a maximum of 12 weeks.

When will I receive my redundancy pay?

The Insolvency Service says it makes 95% of redundancy payments within six weeks, and that special arrangements are being put in place so that it can pay sooner “if practicable to do so.”

The service asks that you do not contact them about how to claim, or to check the status of your application. “This will help us deal with everyone’s application as quickly as possible,” is said on Thursday.

What happens to my Flybe flights?

All Flybe flights have been grounded, and all booking cancelled.

“Flybe customers are therefore urged to make their own alternative travel arrangements via other airlines, rail or coach operators,” the Civil Aviation Authority said on Thursday.

But if you booked flights using a credit card directly with Flybe, and the costs of the flights was more than £100, then it may be possible to get your money back from your credit card company under Section 75 of the Consumer Credit Act.

The Civil Aviation Authority advises customers to contact their card issuers to find out what they may be entitled to.

“Similarly, if you paid by debit or charge card you should contact your card issuer for advice as you may be able to make a claim under their charge back rules,” the authority said on Thursday.

If you booked your ticket through an airline ticket agent, the authority advises you to speak to the agent in the first instance, noting that they may have provided travel insurance that would cover a cancellation resulting from the collapse of the airline.

What happens if Flybe flights were booked as part of a package holiday?

Holidaymakers who’ve booked package holidays that include flights with Flybe are protected by ATOL, a financial protection scheme run by the Civil Aviation Authority that is funded by contributions from tour operators.

The Civil Aviation Authority said on Thursday, however, that it believes that very few Flybe passengers are ATOL protected.

If, however, you are abroad on a package holiday and were meant to return on Flybe flights, you will be able to continue your holiday, because the return flights are effectively guaranteed.

Those with future bookings will likewise be offered a full refund.

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