Troubled carrier Flybe is understood to be preparing to launch a new service between Heathrow and Dusseldorf as part of a route overhaul.

An additional service between Newquay and Amsterdam is also in the pipeline, according to The Telegraph.

The airline announced last week it would swap its Newquay-Heathrow service with Gatwick in March.

The decision has prompted speculation over its motivations for opening up a slot at Heathrow.

More: Flybe dismisses ‘£100m tax break’ reports

Ryanair boss threatens legal action over Flybe ‘bailout’

Ryanair chief Michael O’Leary said the change from Heathrow to Gatwick could help Virgin Atlantic’s business at Heathrow by providing more profitable connecting traffic from elsewhere.

Flybe is owned by a consortium of Virgin Atlantic, Cyrus Capital and Stobart Group.

Last week, Ryanair, easyJet and British Airways owner IAG hit out at the government’s proposed bailout of troubled Flybe which would allow it to defer a a £106 million APD bill.

EasyJet and Ryanair said taxpayer funds should not be used to save a rival, with the latter suggesting the ‘tax holiday’ should be extended to all airlines.

IAG has filed a complaint to the EU arguing that the rescue of Flybe amounted to a breach in state aid rules.