Flybe, Europe’s biggest regional airline, was locked in survival talks on Sunday night less than a year after being bailed out by a Virgin Atlantic-led consortium.
It is understood that Flybe, which handles over half of Britain’s domestic flights outside London, has been trying to secure additional financing amid mounting losses.
EY, the accountancy firm, has been put on standby to handle an administration of Flybe Group, according to aviation industry sources.
The government is understood to have been briefed on the crisis at Flybe in the last few days, with more than 2,000 jobs at risk if the company collapses.
One source close to Flybe said on Sunday night that the Department for Transport and Department for Business, Energy and Industrial Strategy had been working to determine whether the government could provide or facilitate any emergency financing to the company.
If Flybe is unable to stitch together a rescue deal, it would be the second major airline collapse in four months, following Thomas Cook Group’s implosion last September.
Flybe operates about 75 aircraft and serves more than 80 airports across the UK and Europe.
