After two days of rescue negotiations with shareholders and the government, a deal was reached with the regional airline last night (14 January). 

Its shareholders – including a consortium of Virgin Atlantic, Stobart Group and Cyrus Capital Partners – have agreed to inject cash into the business, BBC News reports.

Flybe, which operates from Belfast, Birmingham, Manchester and Southampton, was bought by the consortium last year.

According to Sky News, the deal is likely to involve some deferral of Flybe’s Air Passenger Duty (APD) bill – which carriers usually have to pay at a rate of at least £13 per flight.

Since the announcement, the airline has released a statement which said it is “committed to providing exceptional air connectivity for the UK regions with the full support of its shareholders”.

Mark Anderson, Flybe’s chief executive, said: “Flybe is made up of an incredible team of people, serving millions of loyal customers who rely on the vital regional connectivity that we provide.

“This is a positive outcome for the UK and will allow us to focus on delivering for our customers and planning for the future.”