MPs’ fury over lack of help to industry
BORIS Johnson’s Government has “serious questions to answer” over the lack of preparation for the demise of Flybe, according to MPs.
The airline had been hoping for a £100million lifeline from the Government and changes to air passenger duty taxes when it announced in January it was in trouble – but that sparked a backlash from its rivals.
British Airways owner IAG filed a complaint to the EU, arguing Flybe’s rescue breached state aid rules, and Ryanair threatened legal action against the move.
Transport Minister Kelly Tolhurst told MPs the Government has been “working tirelessly” to help Flybe but the spread of coronavirus had hampered efforts.
She said: “In the last few days, it resulted in a significant impact on demand.”
The Shadow Transport Minister, Labour’s Karl Turner, said: “The loss of 2000 jobs – many in areas very heavily reliant on aviation – will be an extremely heavy blow, as will the wider impact on supply chains and regional economies.”
The SNP’s transport spokesman Gavin Newlands said: “Flybe management have questions to answer as warning signs have been clear for many years.
“Though I do not blame the UK’s Government for Flybe’s demise, it too has some serious questions to answer. The Secretary of State spoke of rescuing Flybe and yet here we are.”
The PM’s spokesman said the Government is “urgently” working with airlines to encourage them to fill routes previously operated by Flybe.