Lots of arguments forming here around apparent political motivation to save Flybe, when so many other private companies have been exclusively left to fail under basic market principles. Even in the air transport sector Monarch and particularly Thomas Cook provided salaries for a vast number of citizens, but were allowed to sink beyond trace without public intervention.
Rank poor, fat cat ineptitude should never be bailed out by the public purse irrespective of cosmetic arguments. The market will always facilitate the void to be filled by a sustainable business.
Certainly if Government use some form of emergency argument to bankroll Flybe short term they would need to be very transparent around the fairness and equitability of the vehicle used. For example a holiday on or total removal of domestic air tax in the UK expressly to keep Flybe in the air would need to be applied fully and equally to all other UK domestic air services - easyJet, BA, Ryanair etc. Or the scheme will be rightfully - and very likely successfully - challenged in court!