Originally Posted by
ATNotts
In point of fact, Flybe are asking for a "commercial loan" so far from using "your money" what they would actually be doing is borrowing and paying "you" back with interest at a commercial rate which will be far superior to any rate that HMG could earn on "your money" were it to put it on deposit anywhere else.
This of course assumes that HMG do due diligence and only lend Flybe money which they expect to get back in good time, with interest.
With all due respect, why don't the owners fund this themselves and/or why do commercial banks not fund this loan?
If you need a loan you go to a bank - you don't ask HMG.
If the airline goes bust after taking this "loan" then it becomes a "write-off".