Ministers have agreed to defer Flybe’s outstanding £106 million air passenger duty bill while the company deals with cash flow problems PETE BYRNE/PAThe troubled regional airline Flybe was given a reprieve last night after ministers agreed a multimillion-pound rescue deal to prevent its collapse. The government is believed to have deferred Flybe’s outstanding £106 million air passenger duty bill until the spring to allow Europe’s biggest regional airline to get through a winter cash-flow crisis. The company’s shareholders are understood to have promised investment of more than £20 million. Ministers risked a backlash from environmental groups after announcing that taxes on domestic flights would be reviewed as part of the rescue deal. A Treasury review before the March budget will assess the impact of air passenger duty (APD), which adds £26 to every short-haul return flight.

Source: The Times January 14, 2020 12:13 UTC