Airline Flybe has been teetering on the brink of collapse this week - the second major airline to face administrators in recent months.

But the troubled firm was given a reprieve overnight after Government ministers agreed to a multi-million pound rescue package.

On Monday, the Exeter-based company was "locked in survival talks" in a bid to secure funding to keep it from falling into administration - just a year after being bailed out by a Virgin Atlantic led consortium of buyers.

Financial backing from the government has provided a lifeline to the airline, which means they are able keep operating.

The news may come as a relief to the 2,000 workers and many of the eight million passengers who travel with Flybe each year.

But following the collapse of Thomas Cook in September of 2019, many will still be cautious about travelling with Flybe.

Is Flybe still operating?

Flybe has said it's continuing to operate as normal - meaning flights are going ahead as planned,  The Mirror  reports.

Its website is also still trading online and a rescue deal means this is likely to continue going forward.  The company is still advertising its January seat sale on social media and all booking links are working as normal.

Andrea Leadsome, Business Secretary at Flybe has said that the deal will keep the company operating. 

Is booking with Flybe safe?

At the moment, the rescue package is allowing the airline to continue operating. The government is believed to have deferred Flybe's outstanding £106m air passenger duty bill until the spring. 

This is to allow it to get through a winter cash-flow crisis. The company's wealthy owners are also understood to have promised investment of more than £20m.

However, on the back of Thomas Cook's sudden collapse, it's worth taking extra precaution to protect your holiday and money.

If you're booking a flight, make sure you have the correct travel insurance to cover you - especially one that covers supplier disruption and cancellations due to collapse.

If you're looking for additional cover, it may also be worth booking on a credit card.  This way, if the airline does collapse, you'll be able to recover your money, in full, under the Consumer Credit Act using Section 75.

For flights which cost less than £100 or booked using a debit card, the Visa/MasterCard/Amex 'chargeback' system can potentially be used to recover the money paid.  The card provider will ask Flybe's bank for a refund as you have not received the service paid for.

Are Flybe passengers ATOL protected?

Flights bought directly from Flybe are not ATOL protected.

But if you booked a package holiday through a UK travel agent, you're likely to be covered by the ATOL protection scheme. In this case, the travel firm will be responsible for arranging alternative flights or providing a full refund.

By law, every UK travel company which sells air holidays and flights is required to hold an ATOL, which stands for Air Travel Organiser’s Licence.

It is the UK's holiday financial protection scheme and costs £2.50 per protected customer. If a travel company with an ATOL ceases trading, the ATOL scheme protects customers who had booked holidays with the firm. It ensures they do not get stranded abroad or lose money.

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