UK defends throwing Flybe a lifeline after rivals complain

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/>