Flybe: Tax exemption period or the airline will close, the government said

Extend the tax term or the airline closes: that is the extraordinary ultimatum presented to the ministers by the owners of Flybe.

Sky News reported that the troubled regional airline, which was assumed by a consortium led by Virgin Atlantic last year, told the government that it needs to hold on to the Air Passenger Service (APD) that has charged until the current tough winter. The season is over. .

Adult travelers pay £ 26 in APD for a round trip within the United Kingdom. Flybe has long complained that the tax puts it at a disadvantage in relation to road and rail transport.

But duty has long been a favorite of the Treasury, because it is easy to collect and difficult to dodge.

Now, the airline seems to be putting together the accumulated tax for December, estimated by The independent for a total of £ 25 million, to persuade the government to help it restructure.

It is understood that the new owners, which also include Stobart Group and a US investment fund. In the US, they are alarmed by the way Flybe has spent cash since they took over in March 2019.

The losses have been exacerbated by a scarce winter that has seen intense competition in the United Kingdom and also on the shortest European routes operated by Flybe.

The consortium estimates that the Boris Johnson government will not tolerate the collapse of the main non-London airline in the United Kingdom. Most of Flybe’s work connects Northern Ireland and Scotland with the English northwest, the central region and the south coast, as well as with the Channel Islands.

But such a concession could violate the competition rules of the European Union, which could complicate the Brexit negotiations.

Flybe continues to operate its full schedule and sell tickets for future trips.


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