British Airways owner IAG has filed a complaint with the EU about UK government support for regional airline Flybe. IAG boss Willie Walsh called the government's support for Flybe 'a blatant misuse of public funds'
LONDON - The British government defended a rescue deal for privately owned regional airline Flybe, after the owner of rival British Airways filed a complaint with European Union regulators on Wednesday calling it a “blatant misuse of public funds”.
Flybe was kept afloat on Tuesday after its shareholders agreed to invest more money alongside a UK government support plan, reported to involve the deferral of a tax bill and a potential government loan. But Flybe’s competitors attacked what they said was government backing for Flybe, arguing that it was no longer a level playing field.
IAG, whose airlines BA and Aer Lingus compete with Flybe, took its complaint to the European Union’s Directorate-General for Competition and asked it to look into whether support for Flybe constituted a breach of EU state aid rules.Walsh and other critics of the Flybe bailout have suggested the carrier’s ultimate owners, which include British Airways’ old rival Virgin Atlantic, had deep enough pockets to ensure the airline’s survival without government help.
EasyJet CEO Johan Lundgren said it was hard to comment given the lack of detail about Flybe’s support package, but added: “Taxpayers should not be used to bail out individual companies especially when they are backed by well-funded businesses.” FILE PHOTO: A Flybe plane takes off from Manchester Airport in Manchester, Britain January 13, 2020. REUTERS/Phil Noble
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