The owner of BA has filed an official complaint to the EC about the bailout of the regional airline Flybe, amid growing political and industry criticism of the government’s rescue deal. IAG has written to the directorate general for competition saying the rescue announced on Tuesday night by ministers, which could include a £100m loan and deferral of an outstanding tax bill, contravenes state aid rules. Willie Walsh, the CE of IAG, had earlier described the deal as “a blatant misuse of public funds”. IAG argues that taxpayers will be subsidising an airline that competes directly on BA and Aer Lingus routes. One of Flybe’s biggest shareholders is also the BA rival Virgin Atlantic, owned by Sir Richard Branson and the US airline group Delta. The EC said it was ready to discuss the bailout and warned that any state aid should not distort competition. A commission spokeswoman said: “As with all member states, we stand ready to discuss with the UK the compatibility and proposed public measures with the EU state aid rules. Any state aid intervention needs to be designed so that competition is not distorted and a level playing field is maintained.” A UK government spokesperson said: “The government has not given any state aid to Flybe.” Opposition parties and rival airlines have demanded transparency and attacked the government for using taxpayer money to prop up the airline, which operates almost two in five domestic UK flights and employs more than 2,000 people. <br/>
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The British government defended a rescue deal for privately owned regional airline Flybe, after the owner of rival British Airways filed a complaint with EU regulators on Wednesday calling it a “blatant misuse of public funds”. A spokesman for PM Boris Johnson dismissed the claims made by Willie Walsh, the boss of BA’s parent company IAG , that government help for Flybe contradicted EU rules. “The government is fully compliant with state aid rules and there has been no state aid for Flybe,” the spokesman told reporters on Wednesday. Flybe was kept afloat on Tuesday after its shareholders agreed to invest more money alongside a UK government support plan, reported to involve the deferral of a tax bill and a potential government loan. Johnson’s spokesman said that the government stepped in to retain transport links between UK regions and any support that is given “would be made on strictly commercial terms”. Many details of the plan have not been made public. Flybe’s competitors attacked what they said was government backing for Flybe, arguing that it was no longer a level playing field. EasyJet CEO Johan Lundgren said it was hard to comment given the lack of detail about Flybe’s support package, but added: “Taxpayers should not be used to bail out individual companies especially when they are backed by well-funded businesses.”<br/>
The CE of Qatar Airways and a past critic of Boeing managers welcomed on Wednesday this month's change at the helm of the US planemaker as it deals with the grounding of its 737 MAX model following two fatal crashes. Boeing appointed David Calhoun, a former GE executive who has been on the Boeing board since 2009, as CE and president. He replaced Dennis Muilenburg. Qatar Airways CEO Akbar al-Baker, who heads one of the Middle East's largest carriers, is a major Boeing customer but has been critical of Boeing and its rival Airbus in the past. He once said Boeing was run by "bean counters and lawyers." "I have huge confidence in the new management of Boeing and I have huge confidence in Mr Calhoun leading the company," Baker said. "I am very glad Mr Muilenburg has gone." Boeing dropped Muilenburg as it became increasingly clear he was making little headway resolving a crisis over the 737 MAX that has cost the planemaker $9b, hurt suppliers and airlines, threatening to cut the pace of US economic growth. The 737 MAX has been grounded since March. Boeing's development of the 777-9, a new version of its popular widebody jet, has been delayed as its attention is focused on recovering from the MAX crisis. Baker said his airline, a launch customer for the 777-9, expected to receive its first delivery of the model by mid-2021, which he said was later than originally planned. "It is important to note that the delay is not because of any other reason other than the MAX," Baker said. "The whole concentration of Boeing is now getting the MAX into the air." Baker said state-owned Qatar Airways would report a loss in the financial year ending on March 31, but expected to break even in the 2020/2021 financial year. The carrier hoped to be profitable in the financial year 2021/2022. Baker said the Qatari carrier would continue to fly to Iran and had not lost any bookings during a spike in Middle East tensions.<br/>
Qatar Airways will add eight new destinations to its network from Doha later this year. The Middle Eastern carrier will begin twice-weekly flights to Kazakhstan’s capital Nur-Sultan – formerly known as Astana – on 30 March, followed by a service to Almaty, also in Kazakhstan, on 1 April. The Almaty route will initially be operated twice weekly, rising to four frequencies a week from 25 May. Thrice-weekly flights to Cebu in the Philippines will begin on 8 April and a daily service to Ghanaian capital Accra one week later. A thrice-weekly service to Trabzon in Turkey will be launched on 20 May, and the Oneworld member will begin operating five frequencies a week to Lyon in France on 23 June. Angolan capital Luanda will join Qatar’s network on 14 October, with a four-times-weekly service, and the addition of a five-times-weekly service to Siem Reap in Cambodia will follow on 16 November.<br/>