Yesterday we reported that Europe’s largest regional airline, Flybe, was on the brink of collapse but today, it has been revealed that the British Government has stepped in with a rescue plan to keep the airline afloat.
British Government Ministers have agreed to work with the troubled airline to create a repayment plan for a tax debt of over £100 million.
The deal means that the airline can keep operating. This will come as welcome news to the eight million passengers who fly with the airline each year. And of course, to the 2000 staff whose jobs were at risk.
The carrier’s network covers 56 airports across Britain and Europe, making it a key mode of transport for millions of people.
We are delighted with the support received from the Government & the positive outcome for our people, our customers and the UK. Flybe remains committed to providing exceptional air connectivity for the UK regions with the full support of its shareholders. https://t.co/2HxRMcd5gh
— Flybe ✈ (@flybe) January 14, 2020
FINANCIAL WOES: Europe’s Largest Regional Airline Flybe On Brink Of Collapse
Flybe has tweeted that they are “delighted with the support received from the Government” and with the positive outcome for their people, their customers and the UK at large.
“Flybe remains committed to providing exceptional air connectivity for the UK regions with the full support of its shareholders,” the airline said
Secretary of State for Business Andrea Leadsom also took to Twitter to praise the government ministers on backing the regional airline.
She said the rescue package would ensure that UK regions “remain connected”.
Delighted that we have reached agreement with Flybe’s shareholders to keep the company operating, ensuring that U.K. 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.
— Andrea Leadsom MP (@andrealeadsom) January 14, 2020
“This will be welcome news for Flybe’s staff, customers and creditors and we will continue the hard work to ensure a sustainable future.”
Secretary of State for Business Andrea Leadsom
Flybe was sold last year to Virgin Atlantic, Stobart Group and US hedge fund Cyrus Capital.
The group is now promising to inject £100 million into the airline now that the government has agreed a plan to ease its cashflow crisis.
The airline will now continue to operate as normal.