Flybe 'at risk of collapse' EDIT 14/1 Government deal allows Flybe to continue to operate

gettingtheresometime

amberhen49 wrote: »

There'll be no airlines left at Birmingham at this rate.

Try Cardiff ....it's usually easier to go to Bristol!

worldtraveller

The government is to consider cutting air passenger duty on all domestic flights as part of a plan to save regional airline Flybe from collapse.

Chancellor Sajid Javid is to meet later with the business and transport departments to discuss lowering the levy, the BBC's business editor says.

The change would allow Flybe to defer a tax bill and implement a rescue plan.

By applying the move to the whole industry, the government would avoid breaching EU state aid rules.

It could also improve regional connectivity, a key Conservative manifesto pledge.

Sky News reports the possible deal over air passenger duty could see Flybe defer a payment of more than £100m for three years.

BBC News

worldtraveller

With all of the current background 'noise' my own gut feeling is that this'll be resolved, for the short term anyway. This is a totally personal view of course, and famous last words and all that...

peachyprice

worldtraveller wrote: »

The government is to consider cutting air passenger duty on all domestic flights as part of a plan to save regional airline Flybe from collapse.

Chancellor Sajid Javid is to meet later with the business and transport departments to discuss lowering the levy, the BBC's business editor says.

The change would allow Flybe to defer a tax bill and implement a rescue plan.

By applying the move to the whole industry, the government would avoid breaching EU state aid rules.

It could also improve regional connectivity, a key Conservative manifesto pledge.

Sky News reports the possible deal over air passenger duty could see Flybe defer a payment of more than £100m for three years.

BBC News

And Greenpeace are up in arms about it. As if a £13 price difference is going to make any difference to the customer when making their choice.

I use Flybe regularly on the LCY-BHD route, using public transport either end. The nature of my job means usually I can only book the day before I need to be in Belfast and I book my return flight on the same morning I return. There is no viable alternative to flying, APD or no APD.

Pennywise

Am I missing something? If this is the air passenger duty, then passengers have paid it to FlyBE - if FlyBE don't have the money to pay it onto HMRC then they've spent it on something else.

Any other small business that has collected a tax, say VAT from its' customers or tax/NIC from its employees is hounded into the ground if it doesn't pay it over to HMRC, ultimately into receivership. HMRC don't take it lightly when they don't get a tax that the business has only "collected" on their behalf.

Why the double standards?

peachyprice

Pennywise wrote: »

Am I missing something? If this is the air passenger duty, then passengers have paid it to FlyBE - if FlyBE don't have the money to pay it onto HMRC then they've spent it on something else.

Any other small business that has collected a tax, say VAT from its' customers or tax/NIC from its employees is hounded into the ground if it doesn't pay it over to HMRC, ultimately into receivership. HMRC don't take it lightly when they don't get a tax that the business has only "collected" on their behalf.

Why the double standards?

Nobody has said they don't have the money to pay HMRC. They are suggesting they can defer the tax bill, hold on to the money and use it to save the company.

Saying they don't have to pay it to HMRC is a way our government can help save Flybe without breaking EU rules, of which we are still bound by.

Robwales

silvercar wrote: »

flights from Bristol or Birmingham? Possibly Heathrow.

Or train to London and the Eurostar?

Yeah been on kayak looking for alternatives since the news broke
"local" options are difficult

BRS no good - sold out

BHX times are all rubbish
LHR - will be near £1k


Eurostar is £900 + trains to get there (id guess £1.2k compared to <£300 for flybe)

Robwales

worldtraveller wrote: »

With all of the current background 'noise' my own gut feeling is that this'll be resolved, for the short term anyway. This is a totally personal view of course, and famous last words and all that...

yeah im beginning to think / hope the same - or at least (very very selfishly) keep flying till the weekend

peachyprice

Robwales wrote: »

yeah im beginning to think / hope the same - or at least (very very selfishly) keep flying till the weekend

I can't see Flybe collpasing within the next few days TBH, now the government are involved in trying to save them. Boris really, really doesn't want them to collpase so soon into his term as one of his pledges was to improve regional links.

Robwales

6pm - Flybe will continue to operate, according to the BBC's business editor:[FONT=&quot]
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