Flybe is saved: the government reaches an agreement with the airline’s shareholders to keep it afloat
- Andrea Leadsom revealed today that the government has reached an agreement with Flybe
- The airline, based in Exeter, southwest England, employs about 2,000 people.
- Sajid Javid had conversations to defer the company’s passenger tax bill.
Flybe shareholders have reached an agreement with the government to keep the regional airline operational.
The Minister of Business, Andrea Leadsom, said today she was ‘delighted’ to have reached an agreement with the airline in conflict, as the ministers discussed whether the regional airline could defer payment of an estimated bill of £ 106 million for passengers Aerial
Based in Exeter, the airline employs about 2,000 people and is owned by a consortium led by Virgin Atlantic. It transports around eight million passengers a year and flies to 170 destinations in Europe from its British centers.
The agreement means that Flybe has avoided being the second UK airline to fail within four months, after Thomas Cook declared bankruptcy in September.
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.”
Flybe shareholders reached an agreement with the British government to keep the regional airline operational, business minister Andrea Leadsom said Tuesday.
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.”
Chancellor Sajid Javid had discussions with commercial and transportation secretaries to analyze whether the regional airline with losses can defer payment of this year’s estimated passenger bill (APD) of £ 106 million over three years or if the The tax should be reduced for all domestic flights, according to multiple reports.
Airlines claim that APD restricts connectivity and passenger growth.
Passengers on domestic flights pay £ 26 in APD for a return trip, with higher fares for longer flights and premium cabins.
It comes after Boris Johnson said the ministers would not “intervene and save” Flybe amid claims that air passenger service could be reduced
The tax is expected to have a value of £ 3.7 billion for the Treasury in 2019/20.
Flybe is the main operator operating in several smaller British cities, including Exeter and Southampton, in the southwest and south.
Lawmaker Stephen Farry, who serves a constituency in Northern Ireland, said he feared that if Flybe disappeared, it would affect connectivity between the province and Britain and deal with the matter with the UK Department of Business.
Transportation Secretary Grant Shapps also welcomed today’s agreement.
He said: ‘Delighted to have been able to work closely with Flybe to ensure that the largest regional airline in Europe can continue to connect communities in Britain. @transportgovuk will carry out an urgent review of how we can level the country by strengthening regional connectivity. ‘
Boris Johnson had said that ministers would not ‘intervene and save’ Flybe amid claims that the air passenger tariff could be reduced on all domestic flights in Britain, saving travelers £ 13 per trip.
Flybe has always claimed that APD is unfair by disproportionately affecting domestic customers who must pay it every time they leave a UK airport.