Martin Lewis told ITV Good Morning Britain that Flybe could not warn customers of their imminent administration because of the “binary situation” facing trading companies. Mr Lewis stated that administrators are less likely to bail out companies with “heavy infrastructure like planes” compared to retailers. He also outlined that the coronavirus outbreak was “the straw that broke the camels back” for Flybe.       

Good Morning Britain host Ben Shephard said: “Should we before we book check the financial status of the company we are booking with?”

Mr Lewis replied: “Look here is the problem and you get this with every administration which people don’t understand.

“They say why were they still selling tickets when they are in this position.

“The answer is if you’re a trading company, you’re a trading company, the moment you can’t afford to be a trading company you go into administration.

“It is a binary situation.

“Either you are trading or you are not.

“You can’t say it is likely we are going to go into administration because if you think you are in administration you have to go into administration by law.

“So it is a pancake flip, it is one or the other.”

He continued: “That is why it happens, that is the way the rules work.

“There is no between stage.

“Of course, administrators could decide to keep something going which we see happening with retailers to protect the brand.

“We don’t see it happening with heavy infrastructure like planes which cost a lot to fly.”

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Good Morning Britain host Susanna Reid asked: “Was coronavirus the tipping point for Flybe?”

Mr Lewis responded: “Yes and it is very difficult for all airlines.

“Flybe has been in trouble for quite some time and this is the straw that broke the camels back.”

Ms Reid said: “Is it the first big business causality of coronavirus?”

Mr Lewis replied: “It is the first big one that we know of, if it turns into a pandemic situation I think it is very unlikely to be the last.”

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