Boris Johnson’s Flybe action is aimed at keeping Britain’s regions on board

As the PM leads Britain out of the EU, says Chris Blackhurst, he must provide proper transport for the entire country – which is what preserving Flybe aims to do

Friday 17 January 2020 20:29 GMT
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Those that decry the preservation of the stricken airline might like to try and live far away from London
Those that decry the preservation of the stricken airline might like to try and live far away from London (AFP/Getty)

No sooner does the newly elected Boris Johnson government get under way than it’s hit with the sort of dilemma all too familiar to those who have followed Britain’s economic and industrial woes these past few decades.

A company hits the buffers and turns to Downing Street for help. The prime minister accedes or refuses, and a furious row ensues. If assistance is forthcoming those against intervention do their nut; if it is rejected, ministers are accused of behaving in a heartless fashion. The government cannot win.

So it is with Flybe, the regional airline. It’s in trouble. Three Whitehall departments – Business, Transport and Treasury – put their heads together and agree to defer £100m of air passenger duty. Apart from that, the precise details of the deal remain scarce. There appears to be a pledge to review “regional connectivity”, and the firm’s owners, Virgin Atlantic, Stobart and the hedge fund Cyrus, seem to be promising “additional funding”.

The measure that matters, though, and the one that has thrown a lifeline, prompting heated opposition, is that deferral of tax.

Immediately, rival airlines, Ryanair and British Airways have consulted their lawyers and are declaring that legal complaints will follow. This is unfair, they shout, it’s state aid favouring one business over another, and it’s contrary to EU rules.

Comparisons are made, too, with package holiday operator Thomas Cook that was allowed to fail before being partly bought out by this very same prime minister. Thomas Cook was a giant compared to Flybe, and thousands of holidays and jobs were imperilled, and yet, the government sat on its hands.

Critics point to the wealth of Flybe’s shareholders and question why they’re not stumping up the necessary readies. They also cite the fact that Flybe is badly run, bloated, and has always struggled. Despite the government’s assistance, they state, unless it’s business model is drastically altered, Flybe will go under – it’s only a matter of when.

By jumping to its rescue the way he has, they claim, Johnson is setting a precedent that may bite him with a vengeance the next time a really giant enterprise employing much larger numbers all over Britain is facing going bust.

Conservative critics maintain that this is precisely the sort of action that belongs to a different type of government, not one that believes in rolling back the state and holding the free market dear.

The government is preserving speedy travel to and from regional airports

All of which is well and good. But these opponents ignore the fact that this is a prime minister elected on the back of support from a non-traditional Tory quarter, from the regions that in the recent past have not voted for his party.

The question ought to be asked, why did that occur? Because for too long they’ve felt ignored by the centre, and they believed Johnson when he said he saw their need and would do his utmost to close the gap. Flybe is precisely the sort of instance when previously their pleas would have fallen on deaf ears, and as a result they would feel even more cut-off and unwanted.

By saving Flybe, the government is preserving speedy travel to and from regional airports. Yes, it is being said that the passengers are well-off business types who liked to use Flybe to reach their second homes in the West Country.

Of course, some of them will be doing that, and for them the air fare from Newquay or Exeter is of little consequence – they could pay less to go by train but they want to save time, and they can afford it. But, all of them?

Britain ... has to offer a properly connected transport network. And that means supplying air travel to those who require and expect it

No, the reality is that if Britain is going to take the place even those critics would like it to take in the post-Brexit, fiercely competitive business world, if it’s going to attract serious, meaningful foreign investment and the money is to head to the starved regions, then it has to offer a properly connected transport network. And that means supplying air travel to those who require and expect it. That may shift with the onset of climate change, but for now, a country that doesn’t have decent motorways, fast trains and linked air routes is second-rate and, for the international investor, of little appeal.

In France, our nearest equivalent don’t forget for overseas investment, executives will think nothing of hopping on a plane from Marseille to Paris – despite there being excellent alternatives in superb autoroutes and the TGV. They’ll even fly from Marseille to Toulouse, a much shorter distance. It’s what they do, it’s quicker and for them, time is money. It’s the same the world over. Go to any domestic air terminal, and business users will be to the fore.

Those denouncing the government’s behaviour do not take account of another truth: that in Britain, we don’t have a parallel comprehensive motorway and high-speed rail infrastructure. If we did, there would be a strong case for allowing Flybe to go to the wall. But when there is no direct motorway to the northeast of England and Edinburgh from London, and only one main road into Cornwall, when the roads and trains we do have are heavily crowded, can we really argue that we have no requirement for a regional air operator?

Those that decry the preservation of Flybe might like to try and live far away from London. If all you’ve got to use is a slow, jammed motorway and a railway that struggles to cope, you can seem very distant. And for those looking to put their faith in a modern Britain that wants foreign investment, it’s as if we can’t be bothered, that we do not want to be connected to the outside world.

In doing what he has done, Johnson has indeed set a precedent – one that entails a government finally listening to the regions and hopefully, beginning to create a joined-up, more economically equal Britain.

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