BA owner opposing Flybe’s rescue deal
BRITISH Airways owner International Airlines Group (IAG) has filed a complaint with the European Union over the Government’s decision to rescue Flybe.
IAG has reportedly claimed to the European Commission that the rescue deal for Flybe breaches state aid rules and gives the struggling airline an unfair advantage.
Downing Street has since insisted there has been “no state aid to Flybe” and any support that is given to the firm would be on “strictly commercial terms”.
It comes hours after IAG chief Willie Walsh publicly criticised the move, describing it as a “blatant misuse of public cash”.
The Treasury announced on Tuesday evening that the loss-making regional carrier would continue operating after agreeing to review air passenger duty (APD). Campaigners in Northern Ireland have long called for APD to be abolished on short haul flights here.
Flybe shareholders agreed to inject extra capital into the airline business as a result, securing the short-term future of 2,400 jobs.
Flybe is owned by Connect Airways, a consortium involving Virgin, Stobart Aviation and Cyrus Capitals, which purchased the airline at the start of last year.
It is understood that IAG’s complaint claims that the Government is propping up “feeder flights” that benefit Virgin and Delta.
The Prime Minister’s official spokesman said: “The actions we have taken will support and enhance regional connectivity across the UK so local communities have the domestic transport connections they rely on.
“Any changes implemented as a result of our reviews of air passenger duty and regional connectivity will apply to all airlines in the competitive aviation market.”