Flybe will keep flying. The British government has reached a rescue deal with the regional airline’s shareholders, a reprieve that officials said averts a collapse that would have put 2,400 jobs at risk.
Business Secretary Andrea Leadsom confirmed the agreement, saying it would keep the company operating and leave U.K. regions connected. She called the outcome welcome news for staff, customers and creditors.
The shape of the deal is still taking form. Transport Secretary Grant Shapps promised an urgent review of regional connectivity, and Sky News reported that Chancellor Sajid Javid was weighing a deferral of a £100 million payment owed by the carrier.
Flybe is Europe’s largest regional airline: 8.5 million passengers a year across 170 destinations. A collapse would have been the second in four months, after Thomas Cook in September. The company owes £106 million in air passenger duty, and under the rescue it may defer that sum for years while it steadies itself.
Not everyone welcomes the lifeline. Green MP Caroline Lucas said the government should not be “throwing a lifeline” to airlines, and MEP Alexandra Philips called the tax relief “climate sabotage.” The British Airline Pilots’ Association, by contrast, said the deal secures 2,400 jobs and protects regional air links.
Sources
- UK Flybe airline reaches bailout deal with government – World Socialist Web Site
- Flybe reaches rescue deal with government to prevent airline collapse | Metro News
