The Business Secretary Andrea Leadsom and Transport Secretary Grant Shapps are to meet with the Chancellor Sajid Javid on Tuesday to hold talks over a possible rescue deal for airline Flybe, according to Sky News.
According to reports by Sky News, the trio will discuss the possibility of backing a deal which it is thought would defer a tax payment of £106m until 2023. The tax bill for air passenger duty could be deferred under a possible deal which would leave Flybe with enough working capital to survive the quieter winter months.
Despite the reported talks, there is no guarantee that the airline will be saved. It is thought that the three shareholders of the company would be required to invest tens of millions into the company as part of a possible agreement. The UK government has previously opted not to bail-out Thomas Cook and Monarch Airlines, both of which have collapsed in the last three years.
The government has not commented on the situation. Flybe continues to say that they ‘provide great service and connectivity for our customers while ensuring they can continue to travel as planned.’ On Sunday, news emerged that the airline was at risk of collapse.