Troubled airline Flybe has reportedly struck a rescue deal with shareholders and the UK government.
In tweet on Tuesday night, Business Secretary Andrea Leadsom said a deal had been agreed that would keep the company operating.
‘This will be welcome news for Flybe’s staff, customers and creditors and we will continue the hard work to ensure a sustainable future.’
The news will be welcomed by Channel Islands residents. In Jersey, the airline operates 16 year-round routes, with two routes in Guernsey. Plus, it is a franchise partner of Blue Islands.
While Flybe has yet to comment at time of writing, Blue Islands issued a statement after rumours broke of a possible collapse.
‘It is business as usual for us and for Flybe. As an independent, locally owned airline, Blue Islands remains fully committed to serving the Channel Islands and customers can continue to book all Blue Islands operated services at flybe.com.’
Based in Exeter, the airline employs more than 2,000 people and is owned by a consortium led by Virgin Atlantic, which purchase the Flybe’s assets for £2.2 million.
Shareholders have reportedly agreed to put more money into the loss-making airline, while the UK government has agreed to review air passenger duty, which had added to the firm’s losses.
