FLYBE has slammed claims by the Daily Mirror that it has only a 20% chance of survival. ‘We are very concerned at what we believe to be a grave editorial mistake and are in discussions with the paper,’ said Ian Taylor, the airline’s general manager in the Channel Islands, yesterday.

‘It would appear that the article has been very poorly researched and it is an editorially flawed piece of journalism.’

Despite Flybe posting a £3.1m profit for the financial year, the newspaper claimed the airline had only a slim chance of survival, while others with substantial losses fared better in its poll on which budget carriers will stay in the air.

‘If one looks at the comparisons, the paper would not appear to make any sense in its conclusions and we have no idea how it reached them. The method of research does not bear up to scrutiny,’ said Mr Taylor.

‘There are big issues facing the airline industry and we accept that, but we made a £3.1m. profit, of which we are very proud.’

Europe’s largest low-cost carrier, Ryanair, has also enraged its rivals, including Flybe, by predicting several of them are potential victims of a ‘bloodbath’ in the budget travel industry.

Chief executive Michael O’Leary forecast that several airlines could go to the wall – and named Flybe.

The warnings come amid rising concern about the future of low-cost airlines.

The soaring cost of oil, fears of terrorism and failing airlines has led experts to warn of soaring ticket prices and axed routes.

But Flybe has hit back.

‘It is clear from his comments that he does not understand our business model and does not understand our unique route structure and therefore should refrain from commenting on things of which he clearly has no comprehension,’ said managing director Jim French.

‘Mr O’Leary and his Irish-based airline have their own substantial problems. It is not unknown for companies with dominant market positions to seek to abuse that power to resolve their own issues.

‘The 4.5m. passengers that will take a Flybe flight this year know we are a successful, vibrant airline that has over 25 years of unbroken history in serving the UK regions and will not be swayed by the intemperate language emanating out of Dublin.’

Mr O’Leary was quoted as saying: ‘The times you test the mettle of a company is when it’s losing money.’

Flybe has responded with a clear message and offer to him.

‘We agree with Mr O’Leary as we were there in 2001. We have taken £40m. out of our cost base and as a consequence delivered two consecutive years of profit growth.

‘So if you want to know how to turn around your winter losses of £2.3m., Mr O’Leary, give us a call. We stand ready and willing to help,’ said Mr French.

Industry sources yesterday backed Flybe.

‘Flybe is a very different kind of low-cost airline. It is operating smaller planes and is tailor-made to serve the likes of Guernsey, Jersey and Exeter,’ said Richard Maslem, of Airliner World magazine.

‘It is a small fish in a big pond but it is successful. It has just announced profits and has a good future, although there are no guarantees in the aviation business,’ he said.

‘It has matured a lot over the years and has changed its business model to suit the market conditions. Guernsey and Jersey are developing as destinations and there is commitment from Flybe and other airlines,’ said Mr Maslem.

A spokesman for the Commerce and Employment Department said that one of the last meetings of the former Transport Board, which now comes under its umbrella, was a presentation from Flybe senior executives, who were extremely upbeat about the future.

‘The Transport Board was satisfied and reasonably happy about its future after asking questions about its financial state,’ he said.

‘Although Flybe badges itself as a low-cost airline, it’s in a different category to a Ryanair or an easyJet which may struggle in the next few years. It’s a different game and I think they would struggle with our limitations.’