FLYBE is about to collapse putting over 2000 jobs at risk as planes of the struggling airline have been impounded.

It is understood the company that operates out of Glasgow, Edinburgh, Aberdeen, Wick and Inverness will go into administration with an announcement expected on Thursday morning.

It comes amid uncertainty about rescue loans and the impact of coronavirus on its bookings.

Two Flybe aircraft have been seized at Glasgow airport as a precautionary measure. It resulted in two flight cancellations, with airport chiefs saying the decision was made by FlyBe.

At least two flights bound for Scotland have been diverted to Manchester, according to reports. Passengers had been told variously that it was down to a technical fault, or a fuel issue.

A Glasgow Airport source said: "Two aircraft have a detention notice on them as a precautionary measure."

READ MORE: Flybe locked in talks to avoid administration

A Flybe spokesman was unable to explain what was happening as flights were grounded on Wednesday night.

It is believed no announcement will be made until after the last plane scheduled flight lands on Wednesday night.

Exeter-based Flybe operates almost two in five of the UK’s domestic flights, employing more than 2,000 people, and is a leading carrier at airports including Belfast, Southampton, Manchester and Birmingham.

One of those caught up in the confusion is Hannah Miley, Scotland's most successful female swimmer who is targeting her fourth Olympic Games in Tokyo next summer.

She said: "Currently sat on a Flybe flight at Manchester Airport unsure whether I'll get to fly home tonight or not Not ideal!"

One Scot Frank McCready who was stranded at Manchester Airport after being diverted away from Glasgow said an announcement had been made by the captain that Flybe had gone into administration. An Edinburgh flight also landed in Manchester.

He added: "Thoughts to all those affected by this terrible news, being delayed is nothing to potentially losing job."

Two hours later he said: "Just off plane, tractor at rear?? Very emotional for all the crew there, cuddles and handshakes from everyone. Passengers all more concerned about staff than delays which is the right reaction. Thoughts with Flybe team."

Following reports of disruption to flights at Glasgow Airport, Flybe said there had been a "miscommunication" over refuelling of two services to Birmingham.

A spokesperson said: "Flybe can confirm that, following a miscommunication regarding re-fuelling this evening, two flights were delayed and that due to the crew now being out of hours, have been cancelled."

Flybe had been looking to the government to commit to helping the airline in the next few days if it is to survive.

But there was speculation the £100m government loan to help stabilise the business is now unlikely to happen.

The coronavirus impact on travel is believed to have made a bad situation much worse.

Mike Clancy, Prospect general secretary, said: "This will be a devastating blow for our members working for Flybe.

"The airline provides important connections to and from parts of the UK where other viable options often don’t exist. A number of regional airports are also highly reliant on Flybe for most or all of their scheduled services.

"Prospect will do everything we can to support our members but the truth is the government has badly let them down.

“The failure to provide the loan that is required as part of a package of rescue measures means the government has failed it its commitment to every part of the UK."

It was understood yesterday the airline believed it had enough financial resources to survive "until the end of this month".

On board and ready to go on #Flybe from Birmingham to Edinburgh but the doors aren’t shut yet....... (it should have left 35 mins ago( pic.twitter.com/HZI8SAeqpE — Kate Williams (@NewsKate) March 4, 2020

In January, it was announced that Flybe had been rescued after government efforts led by the former chancellor Sajid Javid and ex-business secretary Andrea Leadsom.

The measures included some deferral of tax, talks over a loan and promised reviews into regional air connectivity and air passenger duty (APD).

The loan would help it bridge the period between the lean months of winter - when airlines typically lose money - to the richer pickings in summer.

Looks like Flybe has gone bust. 1855 flight from Birmingham to Edinburgh has diverted to Manchester as airports refusing to fuel the planes. Hoping to share a taxi home. Will make getting to HQ a bit tricky from now on @paulflanaga @hodge_claire @Farming_Daft pic.twitter.com/m2EsVBW891 — AHDB Scotland (@AHDB_Scot) March 4, 2020

However, both Mr Javid and Ms Leadsom have left the Cabinet and there has been no evidence that the new chancellor, Rishi Sunak, plans to cut APD in next week’s budget, as Flybe hoped.

Nadine Houghton, national officer of the GMB union, said: "These unfolding developments are a tragedy not only for Flybe's loyal workforce, but a domino effect now puts 1,400 jobs in the wider supply chain at immediate risk and threatens the future of vital regional airports.

"The last thing regions crying out for investment need is to see infrastructure that maintains good jobs ripped away.

"We need the Government to urgently step in and save jobs wherever possible. The damage to already fragile local economies must be minimised."