Business The British Government may reduce taxes on Flybe to...

The British Government may reduce taxes on Flybe to save it from bankruptcy

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Wednesday
fifteen
January
2020

13:41

The British Governmentmay be planning to reduce passenger taxes to Flybe as part of its strategy to save the airlinemost important regional of the country. The Johnson Executive, who has already received criticism for what this could mean for the environment,ensures that you do everything in your power to keep the company from going bankrupt, although it may run into European competition laws.

Willie Walsh, CEO of IAG, has attacked the rescue, calling it "embezzlement of public funds."

At present,Each passenger pays an amount close to 30 euros per ticket for fees, a figure that may be reducedto improve the competitiveness of Flybe and make it more accessible. In fact, and as the BBC has assured, this measure, which was an electoral promise of Boris Johnson, could be extended to the rest of the sector, although to know this we will have to wait for the presentation of the budgets in March.

For their part, from environmental groups such as Greenpeace, they have already expressed their concern: "They cannot proclaim one day that they are world leaders in matters of climatic emergency and the next one will reduce the means of transport that leaves the greatest carbon footprint on the planet."

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The airline, which transports more than eight million people every year, is at risk of bankruptcy even this week, sowill be trying to negotiate a package of aid close to 125 million euros over the next three years.

Even if they were granted,Owners will be asked to put several tens of millions of euros out of their own pocket,which directly affects Virgin Atlantic, Stobart Group (owners of Southend airport) and the investment fund Cyrus Capital Partners, which last year put more than 3 million euros for the rescue and agreed to invest another 120 million in the future.

Another option will be to include some routes that it covers within the "public service obligation", which are nothing more than paths subsidized by the taxpayer to maintain the connections areas with areas that otherwise will not have airplanes or will do so for too high prices. Flybe, in addition, already has one of these routes, which links Heathrow, London, with Newquay.

The prime minister himself has been forced to recognize on the BBC that, although "it is not the government's job" to interfere and save companies that have gotten into trouble, this case is different."We are aware of the importance of Flybe in the connections between different parts of the United Kingdom", says Johnson about a company that operates more than half of the domestic flights that take place outside London.

During the ten years that have passed between 2008 and 2018, the number of passengers who have carried out domestic routes within the United Kingdom has increased from 688 million to a figure of around 500 million, which has sunk airlines such as Flybe and change has boosted other more ecological means of transport such as the train. In any case, in social networks there are already many passengers who have expressed their concern, since they consider it "vital" to be able to move around the country.

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. (tagsToTranslate) economy / business (t) economy (t) business and finance – transport (t) Flybe (t) United Kingdom (t) London (t) Greenpeace (t) Boris Johnson (t) euro (t) Latin America ( t) international (t) Economic News Reports

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