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As it happenedended

Government confirms Flybe will continue to operate

Shareholders agree to put in more money

Tuesday 14 January 2020 19:15 GMT
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Flybe future uncertain

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Britain’s biggest regional airline, Flybe, will continue to operate after rescue talks with the Government proved successful.

“Delighted that we have reached agreement with Flybe’s shareholders to keep the company operating, ensuring that UK regions remain connected,” said business secretary Andrea Leadsom. “This will be welcome news for Flybe’s staff, customers and creditors and we will continue the hard work to ensure a sustainable future.”

Flybe’s shareholders have agreed to invest more money in the airline, according to BBC business editor Simon Jack.

He tweeted: “Government pledges to review air passenger duty in run up to budget but will make changes in line with their zero carbon ambitions.”

Flybe has urged the government to consider an across-the-board cut in air passenger duty to help keep it flying.

Ann Francke, CEO of manager training and education firm CMI, has argued that "The potential loss of Flybe will be a blow to managers and business consultants who need to use air travel to get in and out of locations in the UK that are not covered by high-speed rail links or highways."

helen.coffey14 January 2020 15:06

Rachel Reeves MP weighs in on Flybe:

Cathy Adams14 January 2020 15:33

The Lib Dem Lords argue that a reduction in APD would be "harmful".

Cathy Adams14 January 2020 16:09

Deb Bowen Rees, CEO of Cardiff Airport, called APD a "punitive tax".

Read the entire statement here:

Cathy Adams14 January 2020 16:34

Many social media users are highlighting the human cost if Flybe goes under.

One user tweeted: "My son has just qualified as a Flybe pilot. He regularly flies into Belfast City from Edinburgh. Been in the job a matter of weeks and now facing unemployment along with thousands of others. Heartbreaking."

helen.coffey14 January 2020 17:09

Some experts are arguing that cutting APD, as is currently being mooted, would seriously undermine the government's net zero carbon commitment.

Sam Fankhauser, director of the Grantham Research Institute on Climate Change at the London School of Economics, told The Guardian: “Air passenger duty is applied as a green tax, based broadly on the principle that the polluter pays. Cutting or removing [it] would essentially reduce or eliminate the carbon price for flying.”

helen.coffey14 January 2020 17:39

Flybe will continue to operate, according to the BBC's business editor:

helen.coffey14 January 2020 18:03

Here's a reminder of what Air Passenger Duty (APD) is, and how much is payable on UK flights:

Cathy Adams14 January 2020 18:26

A rescue deal for ailing airline Flybe has been agreed, business secretary Andrea Leadsom has confirmed.

Leadsom said this evening: "Delighted that we have reached agreement with Flybe’s shareholders to keep the company operating, ensuring that UK regions remain connected.

"This will be welcome news for Flybe’s staff, customers and creditors and we will continue the hard work to ensure a sustainable future."

Cathy Adams14 January 2020 18:27

Transport secretary Grant Shapps welcomes the Flybe deal, adding that the government will undertake an "urgent review" into the UK's regional connectivity.

Cathy Adams14 January 2020 18:37

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