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Thread: Flybe in Fresh Money Bother

  1. #1
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    Default Flybe in Fresh Money Bother

    BBC News; Monday 13 January 2020
    Flybe in talks to delay air passenger duty bill

    Flybe is in talks with the government to defer the payment of air passenger duty amid reports the airline is attempting to secure a rescue deal.

    The BBC understands that delaying the tax bill is just one option that is being discussed with the regional airline.
    However, it is understood that the government is reluctant to go down this route.

    A spokesperson for Flybe said: "We don't comment on rumour or speculation.

    It added: "Flybe continues to focus on providing great service and connectivity for our customers, to ensure that they can continue to travel as planned."

    Flybe is a long-time critic of air passenger duty which it said disproportionately burdens its domestic customers because they have to pay 13 each time they take off from a UK airport.

    The airline carries about eight million passengers a year
    from airports such as Southampton, Cardiff and Aberdeen, to the UK and Europe.
    Read More at: https://www.bbc.co.uk/news/business-51100029

    NS Comment: What is so wrong with the business model at Flybe that it is so often on its knees in the news?
    The air passenger duty it wants to hang on to was never meant to be part of its income.
    Why have the bean-counters got it so wrong?
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    Default Re: Flybe in Fresh Money Bother

    BBC News; Tuesday 14 January 2020
    Flybe: Government strikes a deal to rescue troubled airline

    The government has agreed a rescue plan for troubled regional airline Flybe.

    Ministers agreed to work with Flybe to figure out a repayment plan for a significant tax debt that is thought to top 100m.

    Meanwhile, the firm's owners have agreed to pump more money into the loss-making airline.

    Business Secretary Andrea Leadsom said the deal would keep the company operating.

    That will be a relief to many of the eight million passengers who fly with the airline each year.

    Flybe services dozens of UK domestic routes that are not flown by other airlines, making it the largest carrier to fly out of some regional airports like Newquay.

    "Flybe plays a critical and unique role in the UK aviation system, supporting the development of the regions, providing essential connectivity to businesses and stimulating the growth in trade," the boss of the Airport Operators Association, Karen Dee, said in a statement welcoming the rescue deal.
    Read More at: https://www.bbc.co.uk/news/business-51113895

    NS Comment: The urgent rescue plan is certainly welcome. But there is a strong case to review the Flybe business model.
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    Default Re: Flybe in Fresh Money Bother

    BBC News; Wednesday 15 January 2020
    Flybe: Airline and rail rivals attack government rescue

    British Airways' owner IAG has filed a complaint to the EU arguing Flybe's rescue breaches state aid rules.

    The move comes amid a growing backlash against the government's plan to defer some of Flybe's air passenger duty payments, thought to top 100m.
    EasyJet and Ryanair said taxpayer funds should not be used to save a rival.

    Meanwhile, the government's proposal to cut Air Passenger Duty (APD, was attacked by the rail industry's trade body and climate campaign groups.

    EasyJet chief executive Johan Lundgren said: "Taxpayers should not be used to bail out individual companies, especially when they are backed by well-funded businesses."

    While Ryanair said it had called for "more robust and frequent stress tests on financially weak airlines and tour operators so the taxpayer does not have to bail them out".

    The government has said the review of the tax will be consistent with its zero-carbon targets.

    However, in a tweet, Green Party MP Caroline Lucas said: "Addressing Flybe problems by reducing APD on all domestic flights is utterly inconsistent with any serious commitment to tackle the Climate Crisis. Domestic flights need to be reduced, not made cheaper."

    The Rail Delivery Group, which represents train operators, also said any review of APD "that encourages more people to fly domestically would limit efforts to tackle the efforts to tackle the climate crisis".

    Ahead of filing the state aid complaint, Willie Walsh, the outgoing chief executive of IAG, wrote to Transport Secretary Grant Shapps, criticising the government's involvement in its rescue.

    In a letter, Mr Walsh said: "Prior to the acquisition of Flybe by the consortium which includes Virgin/Delta, Flybe argued for tax payers to fund its operations by subsidising regional routes.

    "Virgin/Delta now want the taxpayer to pick up the tab for their mismanagement of the airline. This is a blatant misuse of public funds.

    "Flybe's precarious situation makes a mockery of the promises the airline, its shareholders and Heathrow have made about the expansion of regional flights if a third runway is built."
    Read More at: https://www.bbc.co.uk/news/business-51117885

    NS Comment: Virgin/Delta and Flybe definitely need to review the business model.
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    Default Re: Flybe in Fresh Money Bother

    BBC News; Thursday 16 January 2020
    Flybe: Ryanair's Michael O'Leary threatens legal action over rescue

    The boss of Ryanair has threatened legal action over the government help given to regional carrier Flybe.

    Michael O'Leary has written a strongly-worded letter to the Chancellor, Sajid Javid, saying the state rescue of Flybe contravenes competition rules.

    He argues measures that are being put in place to help Flybe should be extended to other airlines.

    If they are not, Ryanair intends to launch legal proceedings against the government, Mr O'Leary said.

    British Airways' owner IAG has already filed a complaint with the EU, arguing the rescue breaches state aid rules.

    Earlier this week, the government approved help for Flybe, which is thought to centre on giving the airline extra time to pay about 100m of outstanding Air Passenger Duty (APD).

    Details of the rescue plan have not been made public, however the government has said it is fully compliant with state aid rules.


    Read More at
    : https://www.bbc.co.uk/news/business-51140969

    NS Comment: If the government is only giving Flybe extra time to pay about 100m of outstanding Air Passenger Duty (APD), that should not be seen as a free gift.
    If other airlines and stakeholders need that facility, they should make their case to the government, rather than gathering over Flybe like vultures.
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    Default Re: Flybe in Fresh Money Bother

    Originally Posted by No Smoking
    If the government is only giving Flybe extra time to pay about 100m of outstanding Air Passenger Duty (APD), that should not be seen as a free gift.
    If other airlines and stakeholders need that facility, they should make their case to the government, rather than gathering over Flybe like vultures.
    Its an interesting one. The Govenment are deferring receiving what Flybe customers have paid to them; them being us, the state. But, if it rescues them from liquidation, that then saves a spend from the insovency service to the newly unemplyed Flybe staff. Is it just a question of maths?

    My view is that Flybe should be nationalised, like the banks were and takn under special measures, with sod all going to the previous owners of stock, if it is as they say, an vital utility, supporting more remote parts of the UK?
    Last edited by litebulbs; January 17th, 2020 at 07:56.

  6. #6
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    Default Re: Flybe in Fresh Money Bother

    ..
    Last edited by litebulbs; January 17th, 2020 at 07:57.

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