The airline’s move into administration comes after the UK Government agreed a rescue plan in January to save it. Government ministers agreed to work with Flybe to create a repayment plan for the substantial tax debt which the airline has accumulated, which is thought to surpass £100 million.

Yet, Flybe’s decline arose after a bid for further financial support failed.

The company’s downfall has put 2,000 jobs at risk, the BBC reports.

In a letter to the airline’s staff, Mark Anderson, Flybe’s chief executive, said: “Despite every effort, we now have no alternative - having failed to find a feasible solution to allow us to keep trading.

“I am very sorry that we have not been able to secure the funding needed to continue to deliver our turnaround”.

Responding to the airline’s collapse, The UK Government said that it was ready to help Flybe’s employees find new jobs and would work with other airlines to replace services. It said: “We are working closely with industry to minimise any disruption to routes operated by Flybe, including by looking urgently at how routes not already covered by other airlines can be re-established by the industry. “

Flybe has urged those who are due to fly with the airline to not travel to the airport unless alternative flights with another airline have been arranged. Flybe said it would not be able to arrange alternative flights for its passengers.

Tracy Black, CBI Scotland director, said: “Following Flybe’s collapse, our thoughts are with their employees and passengers trying to get home. Understandably they will be looking for reassurances today - addressing their concerns must be a priority.  

“The UK Government must support these talks, help protect those who’ve lost their jobs and secure vital regional connectivity. Better transport links are essential for Scottish firms and fundamental to the UK Government’s ambitions of ‘levelling up’ the UK’s economic performance.”