The administrators handling Flybe have denied talks with the Government over the possible nationalisation of the former Exeter-based airline.
It comes as reports have circulated that accountancy firm EY had asked the government to consider buying the Exeter-based airline out of insolvency.
The that “according to industry sources” Flybe was discussing the possibility of nationalisation with ministers.
However, the accountant handling the administration has otherwise.
An EY spokesperson said: “We continue to be open to approaches from all parties in order to realise returns for creditors.
“At this time, we can confirm that there are no discussions between the Joint Administrators and Government about taking Flybe Limited out of insolvency.”
Last week, former Flybe staff stating that it was “not too late” to save the airline along with thousands of jobs.
Flybe staff have written an open letter to the government urging it to readdress its support and save crucial transport links as well as thousands of jobs.
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Staff said they can provide vital connectivity that will be needed when the coronavirus pandemic is over.
Flybe’s administration came just days before the government announced measures to help businesses affected by coronavirus, with staff being told the company had collapsed on March 5.
A £100 million rescue loan never materialised for Flybe and coronavirus was partly to blame for the recent slump in bookings before its demise was announced at the beginning of the month.
Now, because of coronavirus, other airlines are turning to the Government for help.
A number of routes going to or from Exeter Airport are once again at risk after
Loganair, who took over several routes from Flybe when it collapsed earlier this month, says it will try and have discussions with the Government in the coming days over financial aid due to the problems caused by the coronavirus outbreak.
The Glasgow Airport-based airline has grounded all flights, although those which take essential services such as medical supplies and mail to the remote areas of Scotland, as well as dedicated flights for oil and gas workers, will continue.
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Chancellor Rishi Sunak last week said that airlines should exhaust all other options for funding before asking for help - a position Loganair CEO Jonathan Hinkles described as 'fair' - and that only then would each case be viewed on its individual merits.
But with the current COVID-19 epidemic hitting the aviation industry hard, Loganair now have to ask for help.
"I think what was made clear by the chancellor last week is there won’t be an industry-wide bailout programme, airlines have got to try recourse to their shareholders and their lenders first. We respect that, that’s a fair position to take,” Mr Hinkles said.
“But the chancellor said if you can’t bridge the gap after that, only then can you come and talk to us.
“I do think that like the vast majority of 海角视频 airlines we will be going back to take up that invite for further conversation with the Treasury in coming days because we have to.”