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Flybe asks to defer APD payments to stave off collapse

A Flybe Bombardier Dash 8 Q400 (Image: TransportMedia UK)

A Flybe Bombardier Dash 8 Q400 (Image: TransportMedia UK)

Flybe has asked the government to help it defer a massive Air Passenger Duty (APD) bill in a bid to help it avoid the collapse of the airline.

The bill is understood to run into millions of pounds but deferring it would be classed as state-aid and a breach of European Regulations.

But some sources have suggested that the airline could collapse in the next few days if the Government doesn’t agree to the deferment of the payments.

Sky News has reported that two of the key partners in the consortium who bought Flybe last year, Stobart Group and Cyrus Capital have both expressed concerns over plans to put a further £100 million into the loss-making airline.

Flybe employs around 2000 people in the UK and is the largest regional airline in the UK with airports such as Exeter, Cardiff, Aberdeen and Jersey heavily reliant on the airline.

The airline has remained tight-lipped on the matter saying it “doesn’t comment on speculation or rumour” but CEO Mark Anderson stopped short of denying the news stories in his email to staff.

Flybe flights are currently operating as normal as talks go on between Connect Airways and the Government.

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