What I don't understand is how, accounting wise, FlyBe has presumably used the APD funds for purposes other than intended.
To my simple mind, the APD should have been parked on an escrow-type account, from which the funds would be transferred to the authorities at prescribed intervals. It seems, and do correct me if I'm wrong, that FlyBe has used the APD to help fund daily operations, and when time came to hand it over to the government, the coffers were empty. If that is indeed the case, the management team should be fired on the spot, prosecuted to the extent the law allows, and have their accounting handed over to an independent 3rd party, ensuring that APD funds were not used for any other purpose than intended.
Instead they're seemingly been given an reprieve on the payment, management have not been asked to step down as a prerequisite, and no legal action has been taken, nor does there seem to be any demands to restructure the company with an aim of making it a financially viable proposition.
Privatised profit, socialised deficit springs to mind.