UK air passesnger duty cut considered, to save airline.
Flybe’s network includes more than half of UK domestic flights outside London.
The government is to consider cutting air passenger duty on domestic flights as part of a plan to save Flybe from collapse. However, environmentalists have a negative outlook on the plan, due to the demand for climate change to be prevented.
So why is Flybe important to the uk?
The prime minister (Boris Johnson) quoted that it was “not for government” to step in and save companies that run into trouble/ collapse.
But he also sees the great importance of Flybe. Furthermore, Flybe carries around eight million passengers a year from airports including Birmingham, Manchester, Southampton, Belfast City, Cardiff and Aberdeen, to the UK and Europe.Flybe passengers who use the airline frequently have also raised their concern, as many describing its routes as “vital”.
What is the government considering?
To help the Exceter based company The UK government is considering a cut to air passenger duty. The Changes would be made to allow Flybe to defer its tax bill, design a rescue plan, and secure more than 2,000 jobs. It’s also thought any turnaround plan would be financially supported by Sir Richard Branson’s Virgin Atlantic, which rescued the airline a year ago. Virgin Atlantic, Southend Airport-owner Stobart Group and hedge fund Cyrus Capital Partners paid £2.8m for the airline and come to an agreement that they would invest £100m in the loss-making business. At this moment in time, Flybe has refused to comment on talks over a rescue.
What is air passenger duty?
Air passenger duty is currently charged on all passenger flights from UK airports, excluding the Scottish Highlands and Islands region. The amount is dependent on the destination and class of travel. Under current rules, passengers on domestic flights pay £13 for a single journey, however there is higher rates charged for longer flights and premium cabins.