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Government threatened with legal action over Flybe bailout

by LLB Reporter
16th Jan 20 3:50 pm

Ryanair’s Michael O’Leary has threatened legal action against the government after they bailed out Flybe and that air passenger duty (APD) should be extended to other airlines also.

O’Leary said in a letter to the chancellor, Sajid Javid demanding other airlines should also be given a tax “holiday” on APD and not just to Flybe.

Rival airlines such as Ryanair, British Airways and EasyJet should also be provided with the tax holiday within seven days.

If the government does not provide a tax “holiday” to other airlines, O’Leary said that Ryanair “intends to launch proceedings against your government for breach of UK and EU competition law, and breach of state aid rules.”

In the letter to Javid O’Leary said, if the rival airlines are not provided this tax break within seven days then Ryanair “intends to launch proceedings against your government.”

The Ryanair boss called on the government to provide the full details of the APD tax break they gave to Flybe.

O’Leary said, “This government bailout of the billionaire-owned Flybe is in breach of both competition and state aid laws.

“The Flybe model is not viable which is why its billionaire owners are looking for a state subsidy for their failed investment.”

Speaking to Sky News O’Leary said, “It’s a cover-up. It’s a cover-up so they can bail out a couple of billionaires, Richard Branson, Delta Airlines and this venture capital company from America who claim to have put in £110m into Flybe 12 months ago.

“But are now only putting in £30m. It will only keep Flybe going until March and then you’re back to the same thing again.

“Flybe goes bust again.”

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