Government support offer to Flybe which could continue flights in and out of Spain

Flybe one of the favourite choices of fliers in and out of Spain for expats could be saved this morning from administration.

This morning Andrea Leadsom and Grant Shapps will meet Mr Javid the chancellor to discuss the proposed terms of a bailout of the airline.

Although the government wants to see fresh investment of tens of millions of pounds from the airline which includes Virgin Atlantic and the Stobart Group.

In return the government will defer a tax payment due of around 110 million GBP of Air passenger tax for 3 years, this will allow the airline time to get through the slower winter months and restructure as planned for the more profitable summer months ahead.

The provisional backing of Ms Leadsom and Mr Shapps for support to a rescue package suggests that the threat of administration and probable insolvency could be over if a deal can be agreed on investment from the shareholders.

This will be good news for expats living in Spain especially as the airline carries travellers to more regional airports in the UK such as Exeter and Southampton, whilst preventing price hikes from other carriers due to less competition.

Comments