Flybe collapse could close Southampton and Belfast airports, says MP
Two of Britain’s leading regional airports have denied that were Flybe to fail, they would have to close.
A senior Conservative MP, Tobias Ellwood, named George Best Belfast City and Southampton airports as possible candidates for closure if the ailing regional airline collapsed.
Speaking on BBC Radio 4’s Any Questions?, the MP for Bournemouth East said: “If Southampton airport were to close because this airline went bust, or indeed Belfast City airport, these are changes which are very difficult to then reverse if they happened.”
The pair have the highest proportion of Flybe operations among UK airports. At Southampton, 93 per cent of flights are currently provided by Flybe; at Belfast City, the figure is 81 per cent.
Flybe was rescued by the government last week after its owners said it would fold if it was forced immediately to hand over air passenger duty (APD) collected from customers.
Mr Ellwood defended the government’s decision to rescue Flybe, saying: “What we didn’t want to see is a sudden breakdown of the country coming to a complete standstill, and then having to recuperate which will take a couple of months, two or three months, possibly with the closure of a couple of regional airports.
“That would be very, very damaging indeed.”
A spokesman for the Hampshire airport said: “Although there would be significant and potentially ongoing disruption, Southampton airport wouldn’t close without Flybe.
“We continue to take prudent measures to consider all opportunities should any of our airlines be unable to fulfil their flight schedules.
”Just recently we submitted our planning application to extend our runway by 164 metres, within our own perimeter, which will enable us to further improve the choice and connectivity we offer as one of the UK’s most important regional airports.”
Belfast City airport’s spokesperson said: “There is, and will continue to be, a significant demand for the popular destinations we serve.
“We continuously work with airlines, new and existing, to ensure our route network meets the needs of our passengers and that our business remains a profitable one.”
Virgin Atlantic, Stobart Group and a US investment fund, Cyrus Capital, took over Flybe in March 2019. The intention is to rebrand the airline as Virgin Connect.
The buyers say they have pumped in £110m in 10 months – a rate of more than £15,000 per hour.
Mark Anderson, Flybe’s new chief executive, told staff last week: “We were in worse shape than even the shareholders thought we were.
“Three-quarters of the money the shareholders invested was gone before we even really started. That has hurt this business and more money is needed.”
The government agreed to provide the loss-making airline with a tax “holiday” to defer payment of around £10m. It is also reviewing APD on domestic trips. The flight tax is widely expected to be cut in the Budget in March.
A Department for Transport (DfT) spokesperson said: “The DfT is undertaking an urgent review into how we can level up the country by supporting regional air connectivity and will look at all the options to make sure our airports can continue to play an important role in driving economic growth, creating jobs and making aviation greener than ever.”
The Southampton airport spokesperson said: ”It is crucial that regional aviation is given the support to continue to serve the country’s needs, and this requires both a progressive taxation framework and ongoing policy support for airport growth.”
Belfast City’s spokesperson said: “We welcome the arrival of Virgin Connect later this year and are confident the airline will provide a long-term, sustainable network to and from Northern Ireland.”
Environmentalists have reacted furiously to the prospect of a tax cut. Anna Hughes, director of Flight Free UK, said: “Perhaps Flybe’s woes are a result of low taxes and the race to rock-bottom prices. Slashing APD is not the answer, not for the industry, and certainly not for the environment.”
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