Flybe almost went bust in January.
But the Government has decided it is no longer willing to put taxpayer money on the line.
Flybe operates many UK domestic flights but it also flies to France, Germany and to Italy which is struggling to contain the virus.
Flybe's bookings this month are down 50% on last year.
The airline was already loss-making.
Flybe will wait for the last scheduled flight to land on Wednesday before formally putting the business into administration overnight
It's expected to cease operations with immediate effect.
The collapse of the airline is clearly distressing for its 2,500 staff but it's also distressing for many of the UK’s regional airports - 95% of every flight that takes off and lands at Southampton airport is operated by Flybe.
Belfast, Exeter, Jersey, Cardiff, Guernsey, Aberdeen and Birmingham also rely on the airline.
The insolvency process is already underway.
The government could subsidise routes it deems vital to "regional connectivity".
We’re about to find out if the government has a plan B.
Flybe's owners - a consortium headed by Virgin Atlantic - claim to have invested £140 million in the airline in the last 14 months.
That money has been burned through and the Connect consortium are unwilling to dig deeper without state aid.
The government has decided not worth the risk.