Flybe: government considers air passenger duty cut to save airline
Sajid Javid examines allowing regional carrier to defer paying £100m tax bill for three years
Emergency talks were taking place between the chancellor, Sajid Javid, and the business and transport departments, amid attempts to ensure the survival of Flybe, Europe’s largest regional carrier.
The government is considering whether to cut air passenger duty on all domestic flights, allowing the Exeter-based airline to defer a tax bill of about £100m for three years. The rescue proposal would give Flybe time to implement a turnaround plan, and would also avoid a breach of EU state aid rules, but immediately drew criticism from environmental groups.