Flybe requested a £100m loan from the UK government last month in its bid for survival. However, the state loan is now set to be rejected. The carrier’s management is now clinging to the hope of a cut to air passenger duty in next week’s Budget, the Finacial Times reported. What does this mean for your Flybe flights?
The airline – Europe’s largest regional carrier – narrowly avoided falling into administration in 2019.
It was resumed when it was taken over by Connect Airways — a consortium of Virgin Atlantic, Stobart Air and hedge fund Cyrus Capital.
At the time, Connect Airways agreed to invest £30m into Flybe to keep the airline operating.
However, the carrier’s financial resources are understood to be running out.
According to those briefed on its situation, resources may dry up at the end of the month, reported the Financial Times.
A decision on the £100m loan was delayed from its initially expected date of early February.
This is reportedly due to the governmental reshuffle which slowed discussions.
A new decision on the loan is likely around the Budget next week.
Transport Secretary Grant Shapps said in a January interview: “When Flybe was in trouble they didn’t come to us for any kind of rescue at all.
“But we recognise there is a UK strategic interest in connecting communities together. There is no obvious way to replace that.”
According to the Transport Secretary, the Chancellor Sajid Javid has said the way air passenger duty operates will be reexamined for all UK airlines.
Published at Wed, 04 Mar 2020 13:01:00 +0000