Daily Mail

This air link is vital to Middle Britain

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HOW far should the Government go to prop up Flybe, the UK’s largest domestic airline?

As an ailing carrier owned by a private consortium, many would say it should stand or fall entirely on its own merits. Even with a state bail-out, who’s to say it won’t collapse in the near future, leaving the taxpayer with a huge bill and nothing to show for it. In recent times both Monarch and Thomas Cook were allowed to go to the wall after being refused public interventi­on. Why should Flybe be any different?

But the fact that ministers handed the airline a partial lifeline yesterday, was a recognitio­n that it is different.

Flybe serves many areas of the country which are difficult and expensive to reach by other transport – Cornwall, Northern Ireland, the Isle of Man among them.

If Boris Johnson is serious about regalvanis­ing Middle Britain, losing Flybe would be a major setback, both psychologi­cally and economical­ly.

So in return for shareholde­rs (including Sir Richard Branson) putting more cash into the airline, the Government has agreed to defer a £106million tax bill and review air passenger duty.

A short-term loan has not been ruled out – though that would be harder to justify.

One option for the review is to cut or abolish the duty on all domestic flights. This would have the virtue of being a tax break rather than a direct subsidy, and would benefit all internal UK flight operators equally.

There are green arguments against, of course, and there would be a significan­t cost to the Treasury. But for the wider economy of many ‘left-behind’ towns, such a move could be a godsend.

In his first speech after winning the election, Mr Johnson promised to ‘unite and level up’ flagging provincial towns.

If he is to achieve that goal, maintainin­g and improving their transport links – by rail, road AND air – will be crucial.

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