British Airways-owner slams Flybe rescue

Flybe around eight million passengers annually and flies to 170 European destinations. (Reuters)

• Flybe has failed to turn around its fortunes since it was purchased one year ago
• Flybe carries around eight million passengers annually and flies to 170 European destinations

LONDON: British Airways parent IAG on Wednesday attacked the UK government over its last-minute rescue deal of no-frills carrier Flybe.
Employing around 2,000 people, British airline Flybe has failed to turn around its fortunes since it was purchased one year ago by a consortium led by Virgin Atlantic.
The Connect Airways consortium — which also comprises investment firm Cyrus and infrastructure specialist Stobart — has seen Flybe struggle from weak demand amid fierce competition.
Virgin and its largest shareholder, US airline Delta, “want the taxpayer to pick up the tab for their mismanagement of the airline,” International Airlines Group chief executive Willie Walsh said in a statement on Wednesday.
“This is a blatant misuse of public funds,” added Walsh, who is soon to step down as head of IAG.
Neither the government nor Flybe have disclosed financial details of the agreement, but it will however include a review of air passenger duties paid by its clients alongside extra investments by shareholders.
Flybe, which claims it has been weakened also by uncertainties related to Brexit, carries around eight million passengers annually and flies to 170 European destinations.
Small UK airlines like Flybe have been hit also by volatile fuel costs and a weak pound.