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A rescue deal for ailing airline Flybe has been agreed with shareholders, the business secretary Andrea Leadsom has confirmed.
The UK’s biggest regional airline was in talks with the government to reduce the level of Air Passenger Duty (APD) in order to stimulate demand.
APD is a tax unique to the UK that adds £13 to every short-haul flight. The move was deplored by climate-change campaigners including the Flight Free campaign, Greenpeace and Friends of the Earth.
Ms Leadsom said this evening: “Delighted that we have reached agreement with Flybe’s shareholders to keep the company operating, ensuring that UK regions remain connected.
Created with Sketch.
Created with Sketch.
1/50 14 January 2020
Huge waves hit the sea wall in Porthcawl, Wales, as gales of up to 80mph from Storm Brendan caused disruption around the UK
PA
2/50 13 January 2020
Puppeteers from Vision Mechanic rehearsing with Scotland's largest puppet, a ten-metre tall sea goddess called Storm, in the grounds of the Museum of Flight, East Lothian. Made entirely from recycled materials, it was unveiled ahead of its debut at the Celtic Connections Costal Day celebrations in Glasgow this weekend
PA
3/50 12 January 2020
A windsurfer jumps in the air after hitting a wave in the sea off of West Wittering beach in West Sussex
PA
4/50 11 January 2020
Mikuru Suzuki celebrates winning the women's championship of the BDO World Professional Darts Championships 2020 in London
PA
5/50 10 January 2020
One of seven new lion cubs at the West Midlands Safari Park in Kidderminster
PA
6/50 9 January 2020
Rawson Robinson, from Nenthead, on the Cumbria and Northumberland border clears snow from the model village he has built in his garden
PA
7/50 8 January 2020
People read messages written on the David Bowie mural in Brixton, south London, on what would have been the singer's 73rd birthday
PA
8/50 7 January 2020
England's Stuart Broad celebrates with teammate Ben Stokes after the dismissal of South Africa's Rassie van der Dussen during the fifth day of the second Test cricket match in Cape Town. Stokes claimed the last three wickets in the space of 14 deliveries to wrap up a 189-run win
AFP via Getty
9/50 6 January 2020
Protesters in London take part in a demonstration in support of a British woman found guilty of lying about being gang raped in Cyprus
AP
10/50 5 January 2020
Protesters demonstrate outside the US Embassy in London, after America killed Iran's general Qassem Soleimani in a drone strike at Baghdad's international airport
PA
11/50 4 January 2020
Metropolitan police cordon off Charteris Road close to the junction with Lennox Road in Finsbury Park in north London, after a man was stabbed to death on Friday evening, the first murder in London in 2020
PA
12/50 3 January 2020
Protesters, holding a photograph of the leader of the People's Mujahedin of Iran Massoud Rajavi, outside Downing Street in London after the US killed General Qassem Soleimani in a drone strike at Baghdad's international airport. Soleimani was head of Tehran's elite Quds Force and Iran's top general
PA
13/50 2 January 2020
A keeper counts squirrel-monkeys at London Zoo during the annual stocktake. Caring for more than 500 different species, ZSL London Zoo's keepers face the challenging task of tallying up every mammal, bird, reptile, fish and invertebrate at the Zoo
AP
14/50 1 January 2020
Peter Wright celebrates winning with the Sid Waddell trophy at the Darts World Championships in London. He stunned Michael van Gerwen to clinch his first title 7-3
PA
15/50 31 December 2019
Surfers at Tynemouth on the north east coast
PA
16/50 30 December 2019
Deer graze in the morning mist as cyclists ride by in Richmond Park, London
Reuters
17/50 29 December 2019
Night sky after the sunset at Whitley Bay in Northumberland
PA
18/50 28 December 2019
The Harlequins players arrive at the stadium prior to the Gallagher Premiership Rugby Big Game 12 match between Harlequins and Leicester Tigers at Twickenahm Stadium
Getty Images for Harlequins
19/50 27 December 2019
A car drives through floodwater near Harbridge, north of Ringwood in Hampshire, after the river Avon burst its banks
PA
20/50 26 December 2019
Participants in the Old Surrey and West Kent Boxing Day Hunt in Chiddingstone. Hunting with horses and hounds is a Boxing Day tradition. Since the fox hunting ban in 2004, modified hunts take place using scented trails for the animals to follow
EPA
21/50 25 December 2019
Swimmers of the Serpentine Swimming Club take part in the Peter Pan Cup race, which is held every Christmas Day at the Serpentine, in central London
PA
22/50 24 December 2019
Shoppers bid for cuts of meat during a Christmas Eve auction in Smithfield market in London
EPA
23/50 23 December 2019
Reggie the dog is rescued with a boat from flooding at the Little Venice Country Park and Marina in Maidstone
AFP via Getty
24/50 22 December 2019
People gather at Stonehenge in Wiltshire to mark the winter solstice, and to witness the sunrise after the longest night of the year
PA
25/50 21 December 2019
Southampton's Jack Stephens scores their second goal against Aston Villa
Reuters
26/50 20 December 2019
The coffin arrives for the funeral of London Bridge terror attack victim Jack Merritt at Great St Mary's Church in Cambridge
PA
27/50 19 December 2019
Queen Elizabeth II and her son Prince Charles walk behind the Imperial State Crown as they proccess through the Royal Gallery, before the Queen's Speech, during the State Opening of Parliament
AFP via Getty
28/50 18 December 2019
Luke Jerram's art installation 'Gaia', a replica of planet earth created using detailed Nasa imagery of the Earth's surface, hangs on display at the Eden Project in St Austell, Cornwall
PA
29/50 17 December 2019
A surfer gets into the festive spirit at the inland surfing lagoon at The Wave, near Bristol
PA
30/50 16 December 2019
Snowy conditions near Deepdale in the Yorkshire Dales National Park as snow hits parts of the UK
PA
31/50 15 December 2019
Oisin Carson, 5, picks a Christmas tree at Wicklow Way Christmas tree farm in Roundwood
PA
32/50 14 December 2019
First Minister, Nicola Sturgeon, takes a selfie as she joins the SNPs newly elected MPs for a group photo outside the V&A Museum in Dundee, Scotland
Getty Images
33/50 13 December 2019
Prime Minister Boris Johnson and Carrie Symonds arrive back at Downing Street after the results for the general election were announced. The Conservative Party won with an overall majority
EPA
34/50 12 December 2019
A dog outside a polling station during the general election in Northumberland
Reuters
35/50 11 December 2019
Liberal Democrat leader Jo Swinson stands between a Stop Brexit sign as she attends a general election campaign event at Esher Rugby Club, south west London. Britain will go to the polls tomorrow to vote
AFP via Getty
36/50 10 December 2019
A surfer off the North East coast at Tynemouth
PA
37/50 9 December 2019
Leah Rossiter (left) and Ceara Carney, dressed as mermaids, join members of the Irish Wildlife Trust and Extinction Rebellion Ireland protesting outside Leinster House in Dublin, against overfishing in Irish Waters
PA
38/50 8 December 2019
Labour party leader Jeremy Corbyn poses for selfies with supporters at a general election rally in Colwyn Bay, north Wales
AFP via Getty
39/50 7 December 2019
Speedo Mick outside the stadium before the Premier League match between Everton and Chelsea at Goodison Park
Action Images via Reuters
40/50 6 December 2019
A climate activist wearing a mask and holding a placard reading 'Fossil fuel era is over' outside Millbank Studios in London
AP
41/50 5 December 2019
SNP leader Nicola Sturgeon with the SNP campaign bus in front of the Queensferry Crossing, while on the General Election campaign trail in Scotland
PA
42/50 4 December 2019
The Christmas tree in Trafalgar Square, which is given every year by the city of Oslo as a token of Norwegian gratitude to the people of London for their assistance during the Second World War
PA
43/50 3 December 2019
Protesters against the visit of US President Trump during a demonstration near Buckingham Palace on the first day of the Nato Summit in London
EPA
44/50 2 December 2019
England captain Joe Root celebrates reaching his double century during day 4 of the second Test match against New Zealand at Seddon Park in Hamilton, New Zealand
Getty
45/50 1 December 2019
A hard frost is seen on the first day of the meteorological winter in Pitlochry, Scotland
Reuters
46/50 30 November 2019
A police officer looks at flowers left at London Bridge in central London, after a terrorist wearing a fake suicide vest who went on a knife rampage killing two people, and was shot dead by police
PA
47/50 29 November 2019
School children and students take part in the Youth Strike for Climate in London as part of the Fridays for Future Global Climate Strike
Angela Christofilou/The Independent
48/50 28 November 2019
Cyclists make their way up a tree lined hill near to Moor Crichel in Dorset. November's dismal weather will finally change, with drier and colder conditions coming for the start of December, forecasters have said
PA
49/50 27 November 2019
The moment a swan flew over a flock of 60,000 starlings as dusk fell on Whixall Moss Nature Reserve in Shropshire
Andrew Fusek Peters / SWNS
50/50 26 November 2019
SNP leader Nicola Sturgeon plays with local children during a visit to the Jelly Tots & Cookies Play Cafe in Uddingston, South Lanarkshire
PA
1/50 14 January 2020
Huge waves hit the sea wall in Porthcawl, Wales, as gales of up to 80mph from Storm Brendan caused disruption around the UK
PA
2/50 13 January 2020
Puppeteers from Vision Mechanic rehearsing with Scotland's largest puppet, a ten-metre tall sea goddess called Storm, in the grounds of the Museum of Flight, East Lothian. Made entirely from recycled materials, it was unveiled ahead of its debut at the Celtic Connections Costal Day celebrations in Glasgow this weekend
PA
3/50 12 January 2020
A windsurfer jumps in the air after hitting a wave in the sea off of West Wittering beach in West Sussex
PA
4/50 11 January 2020
Mikuru Suzuki celebrates winning the women's championship of the BDO World Professional Darts Championships 2020 in London
PA
5/50 10 January 2020
One of seven new lion cubs at the West Midlands Safari Park in Kidderminster
PA
6/50 9 January 2020
Rawson Robinson, from Nenthead, on the Cumbria and Northumberland border clears snow from the model village he has built in his garden
PA
7/50 8 January 2020
People read messages written on the David Bowie mural in Brixton, south London, on what would have been the singer's 73rd birthday
PA
8/50 7 January 2020
England's Stuart Broad celebrates with teammate Ben Stokes after the dismissal of South Africa's Rassie van der Dussen during the fifth day of the second Test cricket match in Cape Town. Stokes claimed the last three wickets in the space of 14 deliveries to wrap up a 189-run win
AFP via Getty
9/50 6 January 2020
Protesters in London take part in a demonstration in support of a British woman found guilty of lying about being gang raped in Cyprus
AP
10/50 5 January 2020
Protesters demonstrate outside the US Embassy in London, after America killed Iran's general Qassem Soleimani in a drone strike at Baghdad's international airport
PA
11/50 4 January 2020
Metropolitan police cordon off Charteris Road close to the junction with Lennox Road in Finsbury Park in north London, after a man was stabbed to death on Friday evening, the first murder in London in 2020
PA
12/50 3 January 2020
Protesters, holding a photograph of the leader of the People's Mujahedin of Iran Massoud Rajavi, outside Downing Street in London after the US killed General Qassem Soleimani in a drone strike at Baghdad's international airport. Soleimani was head of Tehran's elite Quds Force and Iran's top general
PA
13/50 2 January 2020
A keeper counts squirrel-monkeys at London Zoo during the annual stocktake. Caring for more than 500 different species, ZSL London Zoo's keepers face the challenging task of tallying up every mammal, bird, reptile, fish and invertebrate at the Zoo
AP
14/50 1 January 2020
Peter Wright celebrates winning with the Sid Waddell trophy at the Darts World Championships in London. He stunned Michael van Gerwen to clinch his first title 7-3
PA
15/50 31 December 2019
Surfers at Tynemouth on the north east coast
PA
16/50 30 December 2019
Deer graze in the morning mist as cyclists ride by in Richmond Park, London
Reuters
17/50 29 December 2019
Night sky after the sunset at Whitley Bay in Northumberland
PA
18/50 28 December 2019
The Harlequins players arrive at the stadium prior to the Gallagher Premiership Rugby Big Game 12 match between Harlequins and Leicester Tigers at Twickenahm Stadium
Getty Images for Harlequins
19/50 27 December 2019
A car drives through floodwater near Harbridge, north of Ringwood in Hampshire, after the river Avon burst its banks
PA
20/50 26 December 2019
Participants in the Old Surrey and West Kent Boxing Day Hunt in Chiddingstone. Hunting with horses and hounds is a Boxing Day tradition. Since the fox hunting ban in 2004, modified hunts take place using scented trails for the animals to follow
EPA
21/50 25 December 2019
Swimmers of the Serpentine Swimming Club take part in the Peter Pan Cup race, which is held every Christmas Day at the Serpentine, in central London
PA
22/50 24 December 2019
Shoppers bid for cuts of meat during a Christmas Eve auction in Smithfield market in London
EPA
23/50 23 December 2019
Reggie the dog is rescued with a boat from flooding at the Little Venice Country Park and Marina in Maidstone
AFP via Getty
24/50 22 December 2019
People gather at Stonehenge in Wiltshire to mark the winter solstice, and to witness the sunrise after the longest night of the year
PA
25/50 21 December 2019
Southampton's Jack Stephens scores their second goal against Aston Villa
Reuters
26/50 20 December 2019
The coffin arrives for the funeral of London Bridge terror attack victim Jack Merritt at Great St Mary's Church in Cambridge
PA
27/50 19 December 2019
Queen Elizabeth II and her son Prince Charles walk behind the Imperial State Crown as they proccess through the Royal Gallery, before the Queen's Speech, during the State Opening of Parliament
AFP via Getty
28/50 18 December 2019
Luke Jerram's art installation 'Gaia', a replica of planet earth created using detailed Nasa imagery of the Earth's surface, hangs on display at the Eden Project in St Austell, Cornwall
PA
29/50 17 December 2019
A surfer gets into the festive spirit at the inland surfing lagoon at The Wave, near Bristol
PA
30/50 16 December 2019
Snowy conditions near Deepdale in the Yorkshire Dales National Park as snow hits parts of the UK
PA
31/50 15 December 2019
Oisin Carson, 5, picks a Christmas tree at Wicklow Way Christmas tree farm in Roundwood
PA
32/50 14 December 2019
First Minister, Nicola Sturgeon, takes a selfie as she joins the SNPs newly elected MPs for a group photo outside the V&A Museum in Dundee, Scotland
Getty Images
33/50 13 December 2019
Prime Minister Boris Johnson and Carrie Symonds arrive back at Downing Street after the results for the general election were announced. The Conservative Party won with an overall majority
EPA
34/50 12 December 2019
A dog outside a polling station during the general election in Northumberland
Reuters
35/50 11 December 2019
Liberal Democrat leader Jo Swinson stands between a Stop Brexit sign as she attends a general election campaign event at Esher Rugby Club, south west London. Britain will go to the polls tomorrow to vote
AFP via Getty
36/50 10 December 2019
A surfer off the North East coast at Tynemouth
PA
37/50 9 December 2019
Leah Rossiter (left) and Ceara Carney, dressed as mermaids, join members of the Irish Wildlife Trust and Extinction Rebellion Ireland protesting outside Leinster House in Dublin, against overfishing in Irish Waters
PA
38/50 8 December 2019
Labour party leader Jeremy Corbyn poses for selfies with supporters at a general election rally in Colwyn Bay, north Wales
AFP via Getty
39/50 7 December 2019
Speedo Mick outside the stadium before the Premier League match between Everton and Chelsea at Goodison Park
Action Images via Reuters
40/50 6 December 2019
A climate activist wearing a mask and holding a placard reading 'Fossil fuel era is over' outside Millbank Studios in London
AP
41/50 5 December 2019
SNP leader Nicola Sturgeon with the SNP campaign bus in front of the Queensferry Crossing, while on the General Election campaign trail in Scotland
PA
42/50 4 December 2019
The Christmas tree in Trafalgar Square, which is given every year by the city of Oslo as a token of Norwegian gratitude to the people of London for their assistance during the Second World War
PA
43/50 3 December 2019
Protesters against the visit of US President Trump during a demonstration near Buckingham Palace on the first day of the Nato Summit in London
EPA
44/50 2 December 2019
England captain Joe Root celebrates reaching his double century during day 4 of the second Test match against New Zealand at Seddon Park in Hamilton, New Zealand
Getty
45/50 1 December 2019
A hard frost is seen on the first day of the meteorological winter in Pitlochry, Scotland
Reuters
46/50 30 November 2019
A police officer looks at flowers left at London Bridge in central London, after a terrorist wearing a fake suicide vest who went on a knife rampage killing two people, and was shot dead by police
PA
47/50 29 November 2019
School children and students take part in the Youth Strike for Climate in London as part of the Fridays for Future Global Climate Strike
Angela Christofilou/The Independent
48/50 28 November 2019
Cyclists make their way up a tree lined hill near to Moor Crichel in Dorset. November's dismal weather will finally change, with drier and colder conditions coming for the start of December, forecasters have said
PA
49/50 27 November 2019
The moment a swan flew over a flock of 60,000 starlings as dusk fell on Whixall Moss Nature Reserve in Shropshire
Andrew Fusek Peters / SWNS
50/50 26 November 2019
SNP leader Nicola Sturgeon plays with local children during a visit to the Jelly Tots & Cookies Play Cafe in Uddingston, South Lanarkshire
PA
“This will be welcome news for Flybe’s staff, customers and creditors, and we will continue the hard work to ensure a sustainable future.”
But Willie Walsh, the chief executive of IAG – parent company of British Airways – described the deal as “a misuse of public funds”.
BA competes with Flybe on some routes.
Mr Walsh said: “Prior to the acquisition of Flybe by the consortium which includes Virgin/Delta, Flybe argued for tax payers to fund its operations by subsidising regional routes.
“Virgin/Delta now want the taxpayer to pick up the tab for their mismanagement of the airline.”
Flybe had been involved in “last-ditch” talks with ministers about its future, with reports that it would be closed down if the government did not offer help to keep it flying.
The regional airline was close to collapse last winter, but was taken over by a consortium led by Virgin Atlantic. It is due to be rebranded as Virgin Connect.
Transport secretary Grant Shapps said: “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,” adding that the Department for Transport “will undertake an urgent review into how we can level up the country by strengthening regional connectivity”.
Pilots’ union Balpa added: “This is good news for 2,400 Flybe staff whose jobs are secured and regional communities who would have lost their air connectivity without Flybe.
“Balpa looks forward to discussing the airline’s future plans in detail with management. Meanwhile, passengers can be confident that Flybe remains an excellent choice for regional flying.
“The government is to be applauded for stepping up to the plate to help one of the few remaining independent UK airlines, and a vital one at that.”
The BBC’s business editor Simon Jack said that the government “pledges to review air passenger duty in run up to budget but will make changes in line with their zero carbon ambitions”.