The UK government has agreed a rescue deal with struggling regional airline, Flybe, in a deal that could reportedly rise up to £100m.
Today’s deal is part of an effort with Flybe to help keep the airline in the skies, while also figuring out a suitable repayment plan. Flybe’s owners have also agreed to put more of their own money into the firm to keep it going. There are also additional measures to support and enhance regional connectivity across the UK.
A governmental review of regional connectivity will ensure all nations and regions of the UK have the domestic transport connections local communities rely on – including regional airports.
As part this work and ahead of the March Budget, the Treasury will also be reviewing Air Passenger Duty to ensure regional connectivity is strengthened while meeting the UK’s climate change commitments to meet net zero by 2050.
These measures featured in discussions today with Europe’s largest regional airline, Flybe, which plays an important role in the UK’s connectivity by flying regional routes that other providers do not operate.
In light of these discussions, Flybe have confirmed they will continue to operate as normal, preserving flights to airports such as Southampton, Belfast and Birmingham.
Secretary of State for Business, Energy, and Industrial Strategy Andrea Leadsom commented: “(I am) delighted that we have reached an 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.”
Chancellor of the Exchequer Sajid Javid said: “I welcome Flybe’s confirmation that they will continue to operate as normal, safeguarding jobs in the UK and ensuring flights continue to serve communities across the whole of the UK.
“The reviews we are announcing today will help level up our economy. They will ensure that regional connections not only continue but flourish in the years to come – so that every nation and region can fulfil its potential.”
Mark Anderson, CEO of Flybe said: “Flybe is made up of an incredible team of people, serving millions of loyal customers who rely on the vital regional connectivity that we provide. This is a positive outcome for the UK and will allow us to focus on delivering for our customers and planning for the future.”