Troubled British no-frills airline Flybe has held crunch talks with the UK government over a potential rescue, reports said Monday. Officials from the Department for Business, Energy and Industrial Strategy and the Department for Transport held weekend discussions about emergency funding, Britain's Press Association news agency said without citing sources.

Flybe, based in Exeter in southwest England, employs about 2,000 people and is owned by a consortium led by Virgin Atlantic. The loss-making carrier was a year ago bought by the 'Connect Airways' consortium, which also comprises infrastructure specialist Stobart and investment firm Cyrus.

However, Flybe has since failed to recover in the face of weak consumer demand, fierce competition and a slowdown in Britain's Brexit-facing economy.