Flybe owners seek govt loan of GBP100m

Flybe’s owners are seeking a GBP100m short-term loan from the UK govt as part of the agreed rescue deal of the troubled regional airline. A decision on whether the govt will provide the loan is expected within the next 2 weeks, according to people with knowledge of the discussions. As part of the deal, Flybe’s owner, Connect Airways — a consortium of Virgin Atlantic, Stobart Air and Cyrus Capital — has agreed to make a further capital injection into the airline, on top of the GBP30m it has already promised to invest in the coming weeks. The investment is expected to be another GBP20m, according to the people. A loan would be a major govt intervention, which is unusual for a Tory administration. The govt has previously stressed that any loan to Flybe would have to comply with EU state aid rules. <br/>