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APD cut being considered to save Flybe

January 14, 2020 / Buying Business Travel

The government is reportedly considering cutting Air Passenger Duty on UK domestic flights in an effort to keep regional carrier Flybe from going into administration. Sky News reported yesterday that the airline had been in rescue talks on Sunday evening, less than a year after it was acquired by Connect Airways for £2.8 million. According to the BBC, chancellor Sajid Javid is scheduled to meet with the business and transport departments later to discuss reducing the levy – currently charged at £13 per flight. Sky News reported the move could see the carrier allowed to defer a payment of £100 million owed for APD until 2023, which could give Flybe time to secure a turnaround plan to stay in business.