There seems to be confusion in postings here.. how I see this is quite simple;
- Flybe shareholders when it was publicly traded were pushed in to a deal to accept the Connect offer due to the cash injection needed to turn the business around.
- Said cash injection hasn't actually come to fruition and I wonder if the markets authority might have something to say about this given this was the basis of the takeover offer that led to many shareholders losing substantial sums of cash.
- A lot of commentary here and elsewhere about how 'wrong' this is. But read carefully, it is a proposed 3 year deferral and not outright allowing them to get away without paying the last 12 months of APD.
- Gov insisting investment is made to a certain level if they do this, guaranteeing the turnaround required.
- Followup to that is a suggested marketwide reduction or potential abolishment of APD on domestic travel that will benefit all domestic flying airfares across all airlines. This is good for business and the economy generally.
- All this commentary about climate change, nothing will change. The fact is that a majority of Flybe's services succeed because there is no alternative or the alternative requires substantial increase in journey time.
I see nothing wrong with what is being proposed here and the EU will certainly have no input on supporting industry-wide domestic fares through APD as it isnt an EU tax, its country specific. If you cant see that this is not only good news, but the right decision for Flybe and the UK.. then I'm at a loss.