Sorry, it makes no sense at all.
Another airline can easily replace all the routes and service that Flybe provides. (although without the crippling debt and inept management)
I've yet to see a single effort to turnaround BE in the past few years besides ploughing millions of pounds into repainting planes purple and endeavoring to change the name.. I don't see what £500m of taxpayer funds will achieve besides a temporary extension before the tin pot comes banging back again; to quote Oliver Twist, "please sir, can I have some more?"
Mistakes have been made in the past when the wicked witch was all powerful , however that dynasty is dead and flybe is on track with a bit of help to rebuild itself and become a profitable airline again