Rescue deal agreed for troubled airline Flybe after talks

A rescue deal has been agreed for troubled airline Flybe, following crunch talks with the UK Government.

The company – which operates out of Scottish airports including Glasgow, Edinburgh, Aberdeen and Inverness – will continue to operate.

Flybe has been hit by a series of problems of late, from falling demand to rising fuel costs and the weakening of the pound.

Discussions were held with the Department for Business, Energy and Industrial Strategy and the Department for Transport over the weekend to see whether they could facilitate emergency financing.

Delighted that we have reached agreement with Flybe’s shareholders to keep the company operating, ensuring that U.K. 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.
— Andrea Leadsom MP (@andrealeadsom) January 14, 2020

Business secretary Andrea Ledsom MP said on Monday: “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.”

Around 2000 people are employed by the Exeter-based airline, which was bought by a consortium consisting of Virgin Atlantic, Stobart Group and Cyrus Capital in February of last year.

Transport secretary Grant Shapps added: “Delighted we’ve been able to work closely with Flybe to ensure Europe’s largest regional airline is able to continue connecting communities across Britain.”