Flybe rescue deal agreed by Ministers

Business secretary Andrea Leadsom said the government had reached an agreement to keep troubled airline Flybe operating.

Ms Leadsom said that the decision would be "welcome news" for staff, customers, and creditors - after 48 hours of uncertainty during which it sought to stave off collapse.

According to Sky News it’s understood  the deal was likely to involve some deferral of air passenger duty for Flybe.

There would also be a review, in March's Budget, of the way the tax is applied to domestic flights - plus further talks about a government loan, and an investor cash injection for Flybe.

Ms Leadsom said on Twitter: "Delighted that we have reached agreement with Flybe's shareholders to keep the company operating, ensuring that UK regions remain connected.