Rescue deal agreed for troubled airline Flybe after talks

The company - which operates out of Scottish airports including Glasgow, Edinburgh, Aberdeen and Inverness - will continue to operate.

A rescue deal has been agreed for troubled airline Flybe, following crunch talks with the UK Government.

The company – which operates out of Scottish airports including Glasgow, Edinburgh, Aberdeen and Inverness – will continue to operate.

Flybe has been hit by a series of problems of late, from falling demand to rising fuel costs and the weakening of the pound.

Discussions were held with the Department for Business, Energy and Industrial Strategy and the Department for Transport over the weekend to see whether they could facilitate emergency financing.

Business secretary Andrea Ledsom MP said on Monday: “Delighted that we have reached agreement with Flybe’s shareholders to keep the company operating, ensuring that UK regions remain connected.

“This will be welcome news for Flybe’s staff, customers and creditors and we will continue the hard work to ensure a sustainable future.”

Around 2000 people are employed by the Exeter-based airline, which was bought by a consortium consisting of Virgin Atlantic, Stobart Group and Cyrus Capital in February of last year.

Transport secretary Grant Shapps added: “Delighted we’ve been able to work closely with Flybe to ensure Europe’s largest regional airline is able to continue connecting communities across Britain.”

STV News is now on WhatsApp

Get all the latest news from around the country

Follow STV News
Follow STV News on WhatsApp

Scan the QR code on your mobile device for all the latest news from around the country

WhatsApp channel QR Code