“This government bailout of the billion-dollar Flybe violates competition and state aid laws. The Flybe model is not viable and that is why its billionaire owners are looking for a state subsidy for failed investment.
The reason Flybe is not viable is because it cannot compete with lower fare services from UK regional airports on domestic and EU routes provided by Ryanair, Easyjet, BA and others; and cannot compete with less expensive road and rail alternatives on many smaller British domestic routes. If Flybe fails (as no doubt once this government grant ends), Ryanair, Easyjet, BA and others will step in and provide lower fares from UK regional airports, as we already have to make up for the recent failure of Thomas Cook Airways.
This Flybe "grant" may not be in compliance with the Competition or State Aid rules unless the same ODA tax holiday period and other government grants are extended to all other UK competing airlines, including Ryanair, Easyjet, BA, among others. "