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| Flybe reaches rescue deal with shareholders | Flybe reaches rescue deal with shareholders |
| (32 minutes later) | |
| Troubled regional airline Flybe has struck a rescue deal with its investors and the government. | Troubled regional airline Flybe has struck a rescue deal with its investors and the government. |
| The firm's shareholders, which include Virgin Atlantic and Stobart Group, have agreed to put more money into the loss-making airline. | The firm's shareholders, which include Virgin Atlantic and Stobart Group, have agreed to put more money into the loss-making airline. |
| Meanwhile, the government has agreed to review air passenger duty, which had added to the firm's losses. | Meanwhile, the government has agreed to review air passenger duty, which had added to the firm's losses. |
| Business Secretary Andrea Leadsom said the deal would keep the company operating. | |
| "Delighted that we have reached agreement with Flybe's shareholders to keep the company operating, ensuring that UK regions remain connected," she tweeted. | |
| "This will be welcome news for Flybe's staff, customers and creditors and we will continue the hard work to ensure a sustainable future." | |
| Transport Secretary Grant Shapps said the government had worked closely with Flybe to ensure its planes were able to continue flying. | |
| He said on Twitter that the Department for Transport would conduct an urgent review that will seek to assess how it can improve regional connectivity. | |
| The government has promised to review the amount of air passenger duty levied on domestic UK airline routes. | |
| The prospect of cutting taxes on flying has angered climate activists who argue that flying is the most carbon intensive mode of transport. | |
| However, the government has said the review of the tax will be consistent with its zero carbon targets. | |
| The Treasury also said it would work with Flybe to figure out a repayment plan for the significant air passenger duty debt. |