BA owner files complaint over Flybe bailout

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/>