• This topic has 138 replies, 52 voices, and was last updated 4 years ago by cb200.
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  • Flybe…. Should the taxpayer fund a failing airline?
  • alpin
    Free Member

    Well, should they?

    Especially given that flybe owners are Delta and Virgin.

    I’m struggling to wee why the taxpayer should help keep a select few people flying to their jobs. Examples given of a guy living in Devon and working in Holland. Move to Holland? Find a job closer to home?

    And how does this sit with reducing CO2?

    scotroutes
    Full Member

    Lots of failing companies get short-term assistance, but normally dependent on some sort of plan being put in place to fix the issues.

    However, it does sit uncomfortably with reducing aviation emissions, especially if (as I understand it) PFD is to be reduced for a number of airlines according to route.

    scotroutes
    Full Member

    LOL – APD, not PFD  🙂

    belfastflyer
    Free Member

    Nope but given it’s connectivity (it’s the airline here for flights to regional airports in GB) within the UK it’d hit hard if it closed.

    That said, didn’t virgin say they were buying them a while back?

    keithb
    Full Member

    To play devil’s advocate… The railways are subsidised, the roads are subsidised, driving is subsidised, so why not UK air travel?  Also, much of flybe’s fleet are low altitude, low speed propeller aircraft which I believe are less polluting than jets?   Could’ve wrong on that last one…

    kimbers
    Full Member

    Yep virgin & delta own it

    But now that Branson has lost some of his tail franchises he’s gotta go over up the taxpayer subsidies somehow, he has a lifestyle to maintain!

    I suspect the brexit bailouts will keep on coming for a while

    What happens when Airbus & the car manufacturers threaten to pull out?

    sharkbait
    Free Member

    Getting rid of APD will apply to all internal flights with whichever company.
    I’m not sure Flybe are getting public money as such as they will still have to pay the APD that’s due…. But they’re going to get longer to pay it.
    So technically I’m not sure they are getting bailed out.

    mtbfix
    Full Member

    So their only unpaid bill is to the taxman? Yet more corporate gaming of the system.

    ajaj
    Free Member

    the roads are subsidised, driving is subsidised

    This has been stated as fact in two different threads this week now, but it’s quite hard to justify unless you count only the Dartford crossing and Cleddau bridge as being unsubsidised. Fuel and vehicle duty raise more revenue than road building costs.

    tomd
    Free Member

    It kind of makes sense, they connect places in the UK that no one else does and where driving or trains would be an unholy nightmare. Some off the top of my head…

    Inverness to Stornoway
    Teesside to Aberdeen
    Glasgow to Southampton

    molgrips
    Free Member

    Government should fund transport infrastructure. However, I’d rather it also got any profits in return; and I’d also rather it were high speed rail.

    ransos
    Free Member

    To play devil’s advocate… The railways are subsidised, the roads are subsidised, driving is subsidised, so why not UK air travel?

    Roads and rail provide for low carbon mass transit. I’d happily increase taxes on private car use though.

    breatheeasy
    Free Member

    It kind of makes sense, they connect places in the UK that no one else does and where driving or trains would be an unholy nightmare. Some off the top of my head…

    Inverness to Stornoway
    Teesside to Aberdeen
    Glasgow to Southampton

    Well, some of those problem important routes are subsidised and thats allowed as they’ve basically realised the role of the connection.

    Not sure Teeside to Aberdeen, or Glasgow to Southampton are unholy nightmares to be honest though specifically. You can probably pick any two towns 300 miles apart and it’d likely be a nightmare if one of them isn’t London.

    Delta/Virgin are one of the more profitable airlines, let them stump up for the tax due.

    scaredypants
    Full Member

    Fuel and vehicle duty raise more revenue than road building costs

    Possibly true but the overall sum depends a bit on what you count, doesn’t it ?

    Building AND maintaining roads – ALL roads (the ones that councils pay for too, as well as Highways Agency)
    Policing of roads (OK, assuming any occurs) and admin costs of overview of the taxation/MoT/ins status
    Direct health and emergency services costs due to crashes etc
    Indirect health costs due to sedentary lifestyles, pollution etc
    Lost opportunity “cost” for providing all that free space for us to store our vehicles on
    (some like to count the cost to businesses of having their deliveries stuck in non-commercial traffic too)
    I’m sure there’s more

    alpin
    Free Member

    I don’t understand why they need to keep flybe going. Surely another airline would step in to fill the void if the routes are viable.

    And given most of these routes are business routes, why not charge a going rate for the flights?

    crazy-legs
    Full Member

    I don’t understand why they need to keep flybe going. Surely another airline would step in to fill the void if the routes are viable.

    The fact that Flybe aren’t making much, if any, money on them would suggest they’re not viable.

    However, they are critical to maintaining connectivity, especially in out of the way places like Isle of Man, Exeter, Plymouth etc.

    I did a day return trip from Manchester to Southampton last year which simply would not have been possible any other way. Train was 4+ hrs each way, driving would have been 5hrs. Flight was 45mins.

    We need more regional connectivity, not super-hub places like expansion of Heathrow.

    frankconway
    Full Member

    Interesting one.
    Flybe have accrued an APD liability of £100million; how big was the liability before the virgin/delta/stobart takeover?; what is the frequency of APD payments by airlines to gov?; were flybe overstating their profitability based on this?
    I’m not convinced it’s correct to describe most of the routes as ‘business routes’.
    The UK road and rail networks, other than between major population centres, are not conducive to ‘rapid transit’ so the routes covered by flybe were probably much appreciated.
    I can’t see how beardy branson and his mates can avoid any liability but how much little they will cop for remains to be seen.
    How long before gov spins this as part of their commitment to support the regions?

    redmist
    Free Member

    They certainly have their flaws but Flybe is extremely useful for me, and offers the only real connection to family on the Isle of Man. They also provide vital medical transport for residents to bigger hospitals in the NW. Yes, if they go bust someone will take over the route but not likely with the same frequency. EasyJet for instance probably isn’t going to offer 4 flights a day to Manchester like Flybe currently does. I’ve also got some Flybe vouchers I need to spend sharpish!

    yourguitarhero
    Free Member

    Nationalise them

    crazy-legs
    Full Member

    EasyJet for instance probably isn’t going to offer 4 flights a day to Manchester like Flybe currently does.

    easyJet and Ryanair don’t have the small prop aircraft that Flybe do. The only reason those flights are even close to break even is because it’s far cheaper to use them than it is to use an Airbus A320. Also I’d guess that many of the regional airports aren’t big enough to even take an Airbus.

    bikebouy
    Free Member

    Well, should they?

    Nope, commercial organisation funded by shareholders.

    But we don’t love in a world of logic, we live in a world of Tory’isms and being told it’s none of our business.

    You voted for em’ this is what you get.

    convert
    Full Member

    How long before gov spins this as part of their commitment to support the regions?

    They already have. That was the spin from whatever minister was on the radio this lunchtime.

    100,000,000 is best part of 4 million lots of £26 APD. They apparently transport 8 million passengers a year so that’s quite a backlog of passing on of duties.

    Torn as environmentally their short hops surely can’t be justified surely in most cases but the current infrastructure for land based travel does not make the case for not using them that compelling to punters.

    tjagain
    Full Member

    Car drivers have a massive subsidy. Cost of motoring is far more than roadbuilding

    martinhutch
    Full Member

    I would say no, but my wife needs to fly from Leeds Bradford to Newquay! It’s either that or eight hours on a train.

    kelvin
    Full Member

    The Isle of Man example… shouldn’t tax payers there bail out that route?

    dannyh
    Free Member

    If they are bailed out, I am willing to bet some arsehole will take a whopping bonus out again within a year.

    torsoinalake
    Free Member

    If they are bailed out, I am willing to bet some arsehole will take a whopping bonus out again within a year.

    Well, they’ve earned it by being a canny operator and timing the bailout ask to perfection. Knowing that the “Brexit is the bestest, let’s level up and unleash Britain” government wouldn’t be able to watch the biggest regional airline in the country go to the wall in the lead up to Jan 31st.

    Personally, I’m relieved. I have just taken on some work in Manchester and as noted above it’s an hour on the plane vs 5 on the train. It would have been a deal breaker if they went tits up (which to be honest has probably only been defered).

    CraigW
    Free Member

    It kind of makes sense, they connect places in the UK that no one else does and where driving or trains would be an unholy nightmare. Some off the top of my head…

    Inverness to Stornoway

    Flybe have already given up on flights to Stornoway. They couldn’t compete with Loganair.
    Seems Flybe will still sell you a ticket to Stornoway, but that is for the same Loganair flight anyway.

    zippykona
    Full Member

    Yes because I’m flying down to Newquay next month.

    We can close the shop at 5.30 and be at our friend’s in Crantock just after 9.

    As an aside how much pollution does our plane create compared to all those people in a car?

    scotroutes
    Full Member

    The fact is that folk shouldn’t be taking on roles and responsibilities that require them to travel those sort of distances.

    scotroutes
    Full Member

    zippykona
    Full Member

    What makes the Eurostar so efficient compared to a normal train?

    baboonz
    Free Member

    How does this decision compare to other European countries?

    scotroutes
    Full Member

    Fewer stops maybe?

    tjagain
    Full Member

    Eurostar is electric. A lot of domestic trains are still diesel

    frankconway
    Full Member

    ‘The fact is that folk shouldn’t be taking on roles and responsibilities that require them to travel those sort of distances’.
    Why not?

    tjagain
    Full Member

    Because its unsustainable environmentally

    the chap who commuted Netherlands to exeter (??) who was complaining bitterly in the press is a prime example. If those flights did not exist he would not be doing it. Same as if yo build more roads more people drive

    Poopscoop
    Full Member

    I bet they will still go under within 5 years anyway…

    Wonder how long the magic money pot lasts into this governments term?

    rsl1
    Free Member

    Ironic that many people choose to fly because it’s cheaper than the train… And now they (supposedly) haven’t made enough money to pay their taxes!

    If we can afford to throw away those kind of sums we can afford to instead invest it in future proof sustainable transport – did we not declare a climate emergency just last year?

    frankconway
    Full Member

    TJ – did you not say something about being committed to your holidays, which involved flights, and being (relatively) unconcerned about the environmental impacts?
    There are many people whose place of work is more than a bit distant from their home; company won’t move and neither will employee so….they commute.
    Are we getting to a point where employee commuting choices are controlled/directed?
    If employee (and family) accept a long distance commute, employer is OK with it and performance is not affected – why not?
    Not many people are in fortunate position of either walking to work or having only a short commute; how short is short?

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