THE British Government has agreed on a “rescue package” with regional carrier Flybe, with the deal believed to include the deferral of a major tax bill.
Flybe owes the government more than 106 million in “Air Passenger Duty,” a tax levied on each traveller as part of Britain’s response to global warming.
Almost exactly 12 months ago Flybe was taken over by a Virgin Atlantic-led consortium (TD 15 Jan 2019), which has promised to inject further capital if the government will help ease the carrier’s immediate cash crisis.
Flybe focuses on the UK domestic market, serving scores of routes to and from smaller airports which are seen as playing a vital role in the economy.
The UK Department of Transport has flagged a review of Air Passenger Duty, but any cut in the 13 per sector levy on domestic services is strongly opposed by climate activists who would prefer to see less flights operating to cut emissions.
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Source: traveldaily