UK regional airline Flybe and the British government on Tuesday reached an agreement that will save the struggling airline and allow it to preserve its flight schedule.
According to an announcement, Connect Airways, the consortium of companies that bought Flybe in February 2019, has agreed to inject an undisclosed cash sum into the airline.
Meanwhile, Flybe will continue to operate as normal, preserving flights to airports such as Southampton, Belfast and Birmingham, and safeguarding jobs in the UK.
“We are very encouraged with recent developments, especially the [UK] government’s recognition of the importance of Flybe to communities and businesses across the UK and the desire to strengthen regional connectivity. As a result, the shareholder consortium has committed to keep Flybe flying with additional funding alongside government initiatives,” Connect Airways Chairman Lucien Farrell said in an announcement.
According to media reports, the agreement between Flybe and the UK government also includes a tax holiday while discussions on a possible government loan continue.
Over concerns that the Flybe rescue deal breaches state aid rules, the International Airlines Group (IAG), the parent company of British Airways, on Wednesday filed a complaint to the European Union.
The move came after a statement by IAG Chief Executive Willie Walsh that the Flybe deal was “a blatant misuse of public funds”.
Flybe operates about 75 aircraft and serves more than 80 airports across the UK and Europe.
The carrier is represented in Greece by Discover the World.