The government agrees an agreement with Flybe shareholders to keep the airline running

The Government has announced that an agreement has been reached to keep Flybe running.

Both business secretary Andrew Leadsom and transportation secretary Grant Shapps tweeted that an agreement was reached with the airline’s shareholders.

Ms. Leadsom said: “Nice to have reached an agreement with the shareholders of Flybe to keep the company running, ensuring that the UK regions remain connected.”

“This will be good news for Flybe staff, customers and creditors and we will continue the hard work to ensure a sustainable future.”

The airline whose network includes more than half of British domestic flights outside London has an important presence in airports such as Aberdeen, Belfast City, Manchester and Southampton.

It flies about 9 million passengers a year to 170 destinations across the continent.

Airline groups have long complained that the tax restricts growth. Passengers on domestic flights pay £ 26 in taxes for a return trip, or more for longer flights or in premium cabins.

The tax is expected to be worth 3.7 billion pounds for the Treasury in 2019-20.

A consortium of Virgin Atlantic, Stobart Group and Cyrus Capital bought Flybe in February 2019. Known as Connect Airways, it paid only 2.2 million pounds for Flybe’s assets, but promised to inject cash into the airline to turn it around.

Flybe has had problems with a number of problems, including the weakening of the pound in light of Britain’s pending departure from the European Union.

The weaker pound hurts airlines like Flybe, which have significant costs in dollars but earn income in pounds.

It is the second airline based in the United Kingdom in four months to face a failure. Thomas Cook went bankrupt in September.

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