Ministers could backtrack on crucial Flybe tax cut
New Chancellor Rishi Sunak could abandon a controversial overhaul of air passenger duty agreed as part of a rescue deal for Flybe - hurling the regional airline's long-term future into jeopardy. Sunak is against a cut to the tax, industry sources said. His predecessor Sajid Javid had backed a reduction in a bid to keep Flybe afloat. One source said: “The change of Chancellor will make it significantly less likely to happen”. Flybe has complained for years that APD of up to GBP26 per flight disproportionately affects its finances, making its low-cost, short trips between UK cities less attractive than alternatives such as taking the train. Slashing the levy was a key part of a rescue deal agreed with ministers last month when the airline came close to appointing administrators after running low on cash. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2020-02-18/unaligned/ministers-could-backtrack-on-crucial-flybe-tax-cut
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Ministers could backtrack on crucial Flybe tax cut
New Chancellor Rishi Sunak could abandon a controversial overhaul of air passenger duty agreed as part of a rescue deal for Flybe - hurling the regional airline's long-term future into jeopardy. Sunak is against a cut to the tax, industry sources said. His predecessor Sajid Javid had backed a reduction in a bid to keep Flybe afloat. One source said: “The change of Chancellor will make it significantly less likely to happen”. Flybe has complained for years that APD of up to GBP26 per flight disproportionately affects its finances, making its low-cost, short trips between UK cities less attractive than alternatives such as taking the train. Slashing the levy was a key part of a rescue deal agreed with ministers last month when the airline came close to appointing administrators after running low on cash. <br/>
