The United Kingdom Civil Aviation Authority (CAA) has revoked flybe. (2002)'s Operating Licence (OL) and Route Licences covering scheduled and charter operations with effect from April 30, 2020.
The Consumers & Markets Group of the CAA proposed to suspend or revoke both the OL and the Route Licences on March 5, immediately after the regional carrier filed for administration, terminated all operations, and voluntarily suspended its Air Operator's Certificate (AOC).
"There was no evidence of any current interest by any counterparty in the purchase of flybe. as an air carrier, or of flybe. remedying its financial problems within 12 months," the CAA said.
The CAA pointed out that any potential sources of funding for the airline, such as the sale of its slots at London Heathrow or a COVID-related government bailout, were not relevant at the time of the hearing. The former of these measures "would not on its own put flybe. in a position to meet the relevant financial viability test", while a potential bailout was neither established by law nor certain to apply to flybe.
"The Panel’s task, however, was to apply the law as it currently stood (particularly in the EU Regulation). If there were a future rescue effort from the government, it seems likely that airlines would have to apply on a case by case basis; there was no indication that any assistance would be forthcoming to an airline that was already in administration," the CAA argued.
As such, there were no grounds to only suspend the OL, rather than revoke it completely, nor were there grounds to grant a Temporary Operating Licence (TOL) to the airline.
The cessation of the validity of the carrier's Route Licences is a legal consequence of the revocation of its OL.
