Ryanair demands same 'tax holiday' amid Flybe rescue deal backlash

Ryanair has demanded that the government extend any “tax holiday” granted to Flybe to other airlines or be in breach of competition and state aid laws. In the growing industry backlash against the rescue of the regional carrier, the Dublin-based airline said that it had written to the chancellor, Sajid Javid, to request the same treatment as Flybe’s “billionaire owners” – who include Sir Richard Branson and Delta Airlines. Ryanair’s CE, Michael O’Leary, warned that Flybe would “undoubtedly fail once the subsidy ends”. The details of the rescue agreement have been kept under wraps since Tuesday evening, when ministers led by Javid announced that Flybe had been saved. The package is understood to involve the short-term deferral of an outstanding air passenger duty (APD) tax bill of GBP106m, a possible loan, and the promise to review APD levels before the March budget. The Department for Transport is also examining whether more Flybe routes could qualify for subsidy under the public service obligation, which funds Flybe’s London-Newquay service. It came amid reports that the struggling airline was looking to scrap its route from Heathrow to Cornwall and would instead use Gatwick. The new route will still qualify for public subsidy, the BBC said, but is expected to be met with disappointment by businesses in the south west who value Heathrow’s range of international destinations. <br/>