It's less than a year since a consortium led by Virgin Atlantic and the Stobart group agreed to purchase the troubled carrier, and only a few months since plans were confirmed to rebrand the airline as Virgin Connect.
If Flybe fails to secure financing, it could prompt the second collapse of a major airline in the United Kingdom in less than six months. Founded as Jersey European Airways in 1979, the airline carries around eight million passengers a year.
It flies to 14 United Kingdom destinations from Belfast City, more than any other airline and makes up 90% of all flights from the airport.
Connect's takeover of Flybe enabled Branson to resurrect his ambitions to run a United Kingdom domestic airline after the demise of Virgin's Little Red offshoot in 2014.More news: What's missing from this year's Oscar nominations
News that Flybe airline is on "the brink of collapse" could put in jeopardy connecting flights announced by City of Derry Airport last November.
For Stobart the deal represented an opportunity to get more passengers to fly from Southend Airport, which it owns.
The uncertainty has thrown the travel plans of thousands of people with Flybe bookings into chaos - with 8.6m passengers flying with the airline previous year.
The BBC reported that this is one of the avenues being explored during talks with the United Kingdom government.More news: Oscars 2020: Scarlett Johansson and Tom Hanks among nominees
'We don't comment on rumour or speculation'.
There were fears for 2,000 job losses on Sunday night as Flybe bosses were locked in survival talks to prevent the airline going into administration.
Flybe is reportedly in urgent talks with the UK Government.
Flybe is yet to officially comment on the report from Sky News, but in a tweet say they "continue to provide great service and connectivity for customers".More news: Death toll rises as firefighter killed in Australian wildfires
GMB national officer Nadine Houghton said: "If Flybe goes belly up, it won't just be direct employees at risk but 1,400 supply chain jobs as well".