Flybe has dismissed as ‘inaccurate” media reports that it will receive a tax payment break of up to £100 million.
The regional airline instead said a payment plan with HMRC had been agreed for “less than £10 million”.
The deal, as part of a wider agreement with the government, followed chief executive Mark Anderson revealing that the carrier was talking to government over a financial loan rather than a bailout.
Flybe said in a statement: “Media reporting of the arrangement Flybe has come to in order to pay its debts to HMRC has been inaccurate.
“A payment plan was agreed with HMRC for a debt of less than £10 million.
“This agreement will only last a matter of months before all taxes and duties are paid in full.
“This is a standard Time to Pay arrangement with HMRC that any business in financial difficulties may use.”
Flybe’s owners, the Connect Airways consortium comprising Virgin Atlantic, Southend airport owner Stobart Group and Cyrus Capital, are thought to be providing up to £30 million in additional short-term funding as part of the rescue deal with the government.
Stobart Group said it would provide £9 million of capital “with the funds drawn down only if required” and said a delay in gaining EU clearance and other “legacy issues” affected the consortium’s turnaround plans and Flybe required a further injection of funds “to ensure continued flying”.
But rival airlines have hit out at the government intervention, claiming the support may be in breach of European competition rules.
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