Flybe

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British Airways ' owner IAG has made a complaint to the EU argue Flybe rescue violations of The Rules on state aid.

The Move comes amid a growing backlash against the government's plan to delay some of Flybe Air passenger duty payments, thought to top £100m.

EasyJet and Ryanair, said taxpayer funds should not be used to save a rival.

to cut Under the proposal of the government, Air Passenger Duty (APD), was attacked by the rail industry's trade body-and-climate-campaign-groups.

EasyJet chief executive Johan Lundgren said: "the taxpayers should not be used to rescue packages for individual companies, especially if they are supported by well-funded companies. "

While Ryanair said it had called for "more robust and frequent stress testing on financially weak airlines and tour operators, so that the taxpayers don't have to get them out of trouble, help".

The government has said the review of the tax, in line with its zero-carbon goals.

But said, in a tweet, Green Party MP Caroline Lucas : "dealing with Flybe problems is by reducing APD on all domestic flights, totally incompatible with any serious commitment to addressing the climate Crisis . Domestic flights must be reduced, not cheaper. "

The Rail Delivery Group, which for rail operators, said the review of APD "the people more to fly in the domestic suggests would limit the efforts to combat the climate Crisis ".

Willie Walsh, The Chief executive, the owner of British Airways , said that the government money should not.

were used Prior to the application of The State aid the complaint, Willie Walsh, the outgoing chief executive of IAG, wrote to Transport Secretary Grant shapp's, criticized the government's involvement in his rescue

In a letter, Mr Walsh said: "Prior to the acquisition of the Flybe by the consortium of the Virgin/Delta includes, Flybe argued for the taxpayers, to Finance its business activity, by the subsidisation of regional routes.

"virgin/Delta now the taxpayers pick up the tab for their mismanagement of the airline. This is a blatant misuse of public funds.

"Flybe precarious situation makes a mockery of the promises the airline, the shareholders and Heathrow have built on the expansion of regional flights, if a third runway. "

But Downing Street said the government "fully compatible" with The Rules on state aid. The Prime Minister , the spokesman said: "there is no state aid for Flybe ," adding that "all future financing on purely commercial terms. "

British Airways ' owner IAG to make the decision, a state aid complaint to the European Commission underlines its determination, The Light - and to overthrow, if possible, to Flybe of the government support.

Ministers have not published The Details of The Arrangement , But there is a "time to pay" arrangements for The Company 's airline passenger duty liabilities to be understood.

These rules apply to companies that are struggling to pay their taxes, But oddly, when It Comes to the obligatory payments.

IAG chief executive Willie Walsh letter to Grant shapp's has noted that Flybe has wealthy backers - Virgin Atlantic is a major shareholder, and a virgin, the main shareholders, in turn, Delta Air Lines, one of the largest and most profitable airlines in The World . These are not argued, the type of business, Mr Walsh, that should keep on support by the taxpayer, your investments trading.

His intervention should, of course, be seen that in view of the long and bitter commercial rivalry Between British Airways and Virgin Atlantic . The position at Heathrow is strengthened by Flybe -feed domestic traffic, and BA would not be unhappy if the stream of traffic was way choked.

'Necessary' move

Three Ministers - Mr shapp's, the Business Secretary, Andrea Leadsom , and the German Chancellor, Sajid Javid signature on the offer, the holding of Flybe in operation.

Although the terms and conditions of the direct aid have not been announced, it includes Forbearance on Flybe Air Passenger Duty (APD) payments.

Mr shapp's said The Move was necessary for the protection of major routes and every rule, the changes Will apply to all carriers.

"the measures that we have taken, the support and promotion of regional connections in the United Kingdom, so that local communities have the domestic transport connections, on which they are based," he said

"All of the changes as a result of our reviews of the Air passenger duty and regional connections apply to all airlines in the highly competitive Air travel market. "

What are the EU rules on state aid?

The State aid is the support provided by the government, companies or other organisations, which has the potential to distort competition.

with The help of debits and credits in the form of direct cash grants, or indirect subsidies such as preferential lending rates, or tax.

According to the regulations of the EU, governments of the member States state aid Only with the approval of the European Commission .

For example, in 2015, the UK government presented plans to convert a grant to Drax Power Station , one of its units from coal -, biomass-fuel. Following an investigation, The Commission ruled in favor of the system.

But there are exceptions to The Rules . For example, allowances, value of less than € 200,000 (£175,000) over a three-year tax-free.

although Brexit to happen on the 31. In January, the United Kingdom, Will continue to follow the EU rules for state aid during the following.

IAG believes that The British government, the same routes as Flybe , But the government is the proposal would be tantamount to illegal state aid as it would affect other airlines do not agree.

Airlines Will collect the duty from the passengers as part of your ticket price, And Then pass it to HMRC.

It is understood Flybe could be up to three months of breathing space to pay about £100m Worth of duty.

The Ministers agreed on a review of passenger charges on domestic flights in a train attacked by environmental activists.

Ms Leadsom defended the decision to intervene, to say that Flybe was a "viable business model".

she also said Flybe situation was different faced by travel company Thomas Cook , which collapsed last year. "The Difference In The World . Between Flybe and Thomas Cook was that, in the case of Thomas Cook , had huge quantities of debt, and any taxpayer of throwing the money would be easy, good money after bad. "

profitable to the owner

Flybe owner of Virgin Atlantic , Cyrus Capital and Stobart Air and inject around £30m of New Money .

In his letter, Mr Walsh pointed out that the virgin is part owned by the US carrier Delta Air Lines, which is one of The World 's largest and most profitable airlines.

He argues that Virgin and Delta Will have to save together the resources, Flybe , and you should not ask for the support of the taxpayers. Mr Walsh said Flybe was bad.

Flybe is already in receipt of some public money for its important Newquay-Heathrow route, which it operates under a "public service obligation" of the contract with the government.

Mr Walsh said that British had given to Airways, to work its readiness, the route without the aid of the Only in the summer - But was excluded because the Flybe offer.

He warned the government that Flybe route Heathrow operations could be diverted In Time , on the long-term and that would not be in line with its policy of the promotion of regional connections to London.

Jobs stored

But Rob Griggs, Director of the policy of Airlines UK to the trade and industry body, has defended the offer. He said what extra time, to Flybe was to pay APD, the same as a direct injection of public funds.

The British Airline Pilots Association (Balpa), a Union, also welcomed the news.

"This is good news for 2,400 Flybe employees whose jobs Will be secured and the regional communities that would have lost their Air -connectivity, Flybe ," said Balpa General Secretary , Brian Strutton.

Lucien Farrell, The Chairman of Connect Airways, which Flybe said The Group had agreed to "keep Flybe fly with additional resources in addition to government initiatives".

"We are very encouraged that with the recent developments, especially the government, the recognition of the importance of Flybe , communities and businesses throughout the UK and The Desire to strengthen regional connectivity," he said.

exeter, air travel, aerospace, companies, iag, transport, british airways, flybe

Source of news: bbc.com