TROUBLED British airline Flybe has reached a deal with the government and its investors.
The carrier’s shareholders, which include the Stobart Group and Virgin Atlantic, have agreed to pump more cash into the company.
The Government has agreed that it will review Flybe’s payment of air passenger duty, which the airline had hoped to defer.
Flybe, which runs flights to several Spanish cities, is able to continue operating, according to Business Secretary Andrea Leadsom.
She said: “Delighted that we have reached agreement with Flybe’s shareholders to keep the company operating, ensuring that UK regions remain connected.”
“This will be welcome news for Flybe’s staff, customers and creditors and we will continue the hard work to ensure a sustainable future.”
Flybe is owned by Connect Airways, which is chaired by Lucien Farrell.
He said: “We are very encouraged with recent developments, especially the government’s recognition of the importance of Flybe to communities and businesses across the UK and the desire to strengthen regional connectivity.”
It comes after Flybe nearly collapsed into liquidation in 2019, before it was bailed out by a consortium, including Virgin, which bought it for €3.3 million.
The Government’s pledge to review the taxes paid on flights caused anger among climate change activists.
Flybe’s Spanish destinations include Madrid, Palma, Alicante and Malaga.