Fleetway Aviation Limited (06437175): administration
- Status
- Administration ended
- Administration began
- 2020-07-13
- Administrators' firm
- PwC
- Incorporated
- 2007-11-26
- Location
- Leeds
- Industry
- 79110 Travel agency activities
Why it went into administration
- COVID-19
- Cash flow / liquidity pressure
- Sustained trading losses
- Weak consumer demand
- Rising costs / inflation
- Funding withdrawn / unable to refinance
- Parent or group failure
- Brexit
From the administrators' statement
Trading performance and cash flow pressures
Fleetway began experiencing performance issues in 2018 with turnover falling 17.7% compared to the prior year. At the time the travel industry as a whole was experiencing weakened consumer confidence, largely driven by Brexit and other political uncertainty across the globe. This contributed to the failure of some of the business’s major suppliers, such as Monarch and Alitalia, requiring Fleetway to find replacement suppliers and increasing costs in the short term. These issues were exacerbated by a marketing partner reducing the number of advertising slots available, resulting i in a reduction of sales by £8m in the space of nine months. . .
In response to the difficult trading conditions, the directors of the Companies tooks steps to implement a strategic plan to respond and adapt to the environment, focused around establishing direct to consumers as the primary sales ~ channel and investing in technology. Further supplier failures, such as Thomas Cook, continued to adversely affect the business, but Fleetway was nonetheless able to achieve a 13% growth in revenue between FY18 and FY19; and a 39% growth in direct sales.
Administrators' statement of proposals (2020-09-24) · Companies House register