Flybe’s planes at risk of being impounded as wait for rescue package goes on

It appears Owl is not the only one flying on a wing and a prayer at the moment.

Embattled Flybe is facing a nervous wait over its potential £100m taxpayer loan amid reports that air traffic controllers could impound the regional airline’s planes.

According to mortgage records, many of Flybe’s planes are owned by other firms such as NordLB and Nordic Aviation Capital, who lease them to Flybe to use.

The Sunday Telegraph reported that the firms are monitoring the situation closely. Firms which lease planes to aircrafts are usually allowed to monitor debts owed to air traffic controllers in order to protect their interests.

Debts to air traffic controllers, which could add up to millions of pounds according to one source, must be paid within 30 days.

Last week it was reported that Flybe had been in talks with baggage handlers and other suppliers to postpone the payment of its debts until its rescue package is approved.
The struggling airline has also asked airports to be patient regarding unpaid landing fees.

Last month Flybe staved off collapse after shareholders and the government struck a controversial deal that will review the regional airline’s air passenger duty contributions.