Flybe defends government funding as Ryanair boss calls on the U.K. government to share passenger tax “holiday”—threatens EU action
, by stating multiple times that this constitutes a bail out of “billionaire owners”—Richard Branson, Delta Air Lines and Cyrus Capital—which acquired Flybe last year aiming to convert the troubled regional carrier into a feeder airline for Virgin Atlantic.
“This Government bailout of the billionaire owned Flybe is in breach of both Competition and State Aid laws. The Flybe model is not viable which is why its billionaire owners are looking for a state subsidy for their failed investment,” O’Leary said in a statement accompanying the publication of his letter.
O’Leary also said that the government should extend the “APD eco tax holiday and other Government subsidies” to Flybe’s competitors, though it’s unclear what other subsidies he means. In his letter to the Chancellor, O’Leary asks the government to detail the aid given to the carrier, implying that other assistance beyond deferment of the APD taxes may have been given.
O’Leary’s letter also issues a seven-day warning to the Chancellor that Ryanair will follow IAG’s lead and take the UK to court in the EU over what may constitute uncompetitive state aid, if the government does not extend the ADP break to “all other competitor airlines.”that the value of tax deferment given to Flybe may be less than previously thought, less than $13 million, though the arrangements are confidential.
“We are in conversation with the government around a financial loan - a loan, not a bailout - a commercial loan, but that is the same as any loan we’d take from any bank,” the BBC
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