Struggling airline Flybe secures government rescue deal

Regional airline Flybe has been thrown a lifeline as the government has agreed a rescue plan.

The troubled airline will be offered a repayment plan by ministers for debt that is thought to exceed £100m.

Under the plan, the airline’s existing shareholders, such as Virgin Atlantic and Stobart Group, have agreed to put more money into the business.

In addition, the government has pledged to review the £26 air passenger levy on UK domestic return flights, which has contributed to the airline’s losses.

Lucien Farrell, chairman of Connect Airways which owns Flybe, commented: “We are very encouraged with recent developments, especially the government’s recognition of the importance of Flybe to communities and businesses across the UK and the desire to strengthen regional connectivity.”

Brian Strutton, general secretary of union The British Airline Pilots Association, added: “This is good news for 2,400 Flybe staff whose jobs are secured and regional communities who would have lost their air connectivity without Flybe.”

Want your business, product or service to be seen regionally and nationally? Bdaily helps you get your story in front of the right audience, every day. Find out how Bdaily can help →

Join more than 55,000 subscribers by signing up to our daily bulletin each morning here.