Ryanair CEO Questions Flybe Bailout, Calls for Lower UK Air-Passenger Duty
29 January 2020 - 3:44AM
Dow Jones News
By Anthony O. Goriainoff
Ryanair Holdings PLC (RYA.LN) Chief Executive Michael O'Leary is
calling on air-passenger duty to be reduced for all airlines and
passengers that use U.K. regional airports, following the British
government's decision to allow troubled budget airline Flybe to
delay payments of the tax.
Mr. O'Leary said in a letter to the Chancellor of the Exchequer,
Sajid Javid, that the decision was a breach of state-aid rules and
that Flybe wasn't "a viable business with genuine short-term
difficulties."
In a letter sent earlier in the month, the Ryanair chief
threatened legal action over the government's intentions to rescue
Flybe if Mr. Javid didn't disclose what support was being given to
the regional airline.
Mr. O'Leary reiterated his calls for releasing the details of
the bailout on Tuesday.
Flybe said earlier this year that it had received support from
the U.K. government, but didn't provide any further details on the
rescue package.
Reports had indicated that the airline--which was bought out by
a consortium including Stobart Group Ltd. (STOB.LN) and Virgin
Atlantic last March--said that Flybe needed extra funds in the face
of mounting losses.
Shares in Ryanair at 1610 GMT were up 0.9% at EUR14.83.
Write to Anthony O. Goriainoff at
anthony.orunagoriainoff@dowjones.com
(END) Dow Jones Newswires
January 28, 2020 11:29 ET (16:29 GMT)
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