Administrators for collapsed airline Flybe have been unable to find a buyer after two and a half weeks of discussions.
Administrators Interpath said it will begin “winding down the business” and “identifying options” for the sale of “rights, interests and assets”.
As a result, a further 25 employees have been made redundant with immediate effect.
David Pike and Mike Pink from Interpath Advisory were appointed joint administrators on January 28, after the regional carrier fell into bankruptcy for the second time in three years.
There was speculation that airline groups Lufthansa and Air France-KLM were in talks with the administrators to buy the airline, which held lucrative take-off and landing slots at Heathrow Airport.
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, which meant there was a limited window in which a clear path forward could be set.
“Furthermore, it was clear from the outset that 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. We thank those parties for their engagement.
“However, it is with regret that discussions have now been brought to a close without a deal being agreed.
“We’d like to thank a number of stakeholders, including the CAA and the Company’s lessors, who gave us the time and support we needed to ensure we were able to explore every available avenue to rescue the business. We’d also like to thank those employees who have been working closely with us since our appointment, and who have worked with diligence and professionalism in this unsettling period.
“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. 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.”