Click For Photo: https://i.dailymail.co.uk/1s/2020/01/14/18/23394758-0-image-a-15_1579025507112.jpgClick For Video: https://videos.dailymail.co.uk/video/mol/2020/01/14/7903927560679505330/1024x576_MP4_7903927560679505330.mp4
Flybe's collapse was averted today after the Government said it would review air passenger duty and shareholders agreed to inject additional investment.
The Treasury announced today the loss-making carrier would continue operating after the review of the tax featured in rescue talks.
Flybe - Shareholders - Cash - Injection - Understood
Flybe's shareholders agreed to a cash injection - understood to be in the region on tens of millions of pounds - to keep Europe's largest regional carrier in business 'alongside Government initiatives'.
The emergency agreement seeks to prevent Flybe becoming the second UK carrier to fail in four months after Thomas Cook went bust in September.
Business - Minister - Andrea - Leadsom - Today
Business minister Andrea Leadsom today said she was 'delighted' to have reached an agreement with the embattled airline - as ministers reportedly discussed whether the regional carrier could defer paying an estimated £106 million air passenger duty bill.
Based in Exeter, the airline employs about 2,000 people and is owned by a consortium led by Virgin Atlantic. It carries around eight million passengers annually and flies to 170 destinations around Europe from its British hubs.
Deal - Flybe - UK - Airline - Months
The deal means Flybe has avoided being the second UK airline to fail in four months, after Thomas Cook went bust in September.
Ms Leadsom said: 'Delighted that we have reached agreement with Flybe's shareholders to keep the company operating, ensuring that U.K. regions remain connected.
'This - News - Flybe - Staff - Customers
'This will be welcome news for Flybe's staff, customers and creditors and we will continue the hard work to ensure a sustainable future.'
Chancellor Sajid Javid had held talks with the business and transport secretaries to discuss if the loss-making regional carrier can defer paying this year's estimated air passenger duty (APD) bill of £106 million for three years or whether the tax should be cut for all domestic flights, according to multiple reports.
Airlines - APD - Connectivity - Passenger - Growth
Airlines claim APD restricts connectivity and passenger growth.
Passengers on domestic...
Wake Up To Breaking News!