Budget airline Flybe is to be wound down after administrators announced today they had not found a buyer for the business.
Discussions had been ongoing with interested parties about taking over the Birmingham-based operator but no deal could be completed in the timeframe.
This means a further 25 jobs have now been lost, in addition to the 276 employees who were made redundant immediately upon the appointment of administrators last month.
Flybe was only relaunched in late 2021 under new ownership and management as a rebirth of the previous carrier of the same name which was headquartered in Exeter.
The new owner decided to base the firm's head office at Birmingham Airport and began launching a host of domestic and short-haul European routes in April last year.
But administrators from Interpath Advisory were appointed on January 28 with the late delivery of 17 aircraft cited as one of the main reasons behind the airline's demise.
A statement from Interpath Advisory said it had received "significant interest from a number of credible parties" but a deal could not be completed in the available time frame.
Joint administrators David Pike and Mike Pink will now commence the process of winding down the business and identifying options regarding selling specific rights, interests and assets.
Mr Pike said: "Over the past two and a half weeks, we've held intensive discussions with a number of operators with a view to rescuing the airline and preserving the value in its assets.
"Unfortunately, there was a challenging set of circumstances at play including the 'use-it-or-lose-it' rules related to slots, complexities with European recognition of a potential temporary operating licence and the high costs associated with preserving the company's operating platform.
"This meant there was a limited window in which a clear path forward could be set. Furthermore, it was clear from the outset there was only a limited number of parties who had the necessary strategic fit and who could navigate the complexities of such a transaction to get a deal over the line.
"It is with regret that discussions have now been brought to a close without a deal being agreed."
Mr Pike thanked staff, stakeholders and Flybe's lessors whom he said gave administrators the time and support needed to explore every available avenue to rescue the business.
"Over the coming days, we will continue to work with the lessors to return the aircraft records to them and will also continue to provide support to those employees who have been impacted by redundancy," he added.
"We are particularly grateful to those operators and other organisations across the aviation industry who have reached out to us directly to offer support in finding new roles for employees."
At the time of the appointment of administrators, Flybe employed 321 staff and operated 21 routes to 17 destinations across the UK and EU.
A large proportion of its airline and back office staff were based at Birmingham Airport, along with 138 employees at Belfast Airport and the remainder in Exeter and other locations.
The "old" version of Flybe was once Europe's largest regional carrier, flying around eight million passengers a year and employing 2,500 staff.
It was owned by global private equity house Cyrus Capital, alongside Virgin Atlantic and Stobart Group, but collapsed into administration in March 2020 shortly before the world was plunged into a global lockdown because of the coronavirus pandemic.
The brand, intellectual property, stock and equipment of the old business was later bought for a nominal fee from administrators by Cyrus Capital.
