BA plugs flight gap abandoned by Flybe

British Airways tailfins

British Airways has announced plans for direct flights from Newquay to Heathrow this summer, after troubled airline Flybe pulled out of the route.

BA will operate five return flights a week from 2 July to 7 September.

Flybe, saved from collapse by government help, is switching Newquay flights from Heathrow to Gatwick.

BA said its service will not get a government subsidy, unlike Flybe's. However, Flybe said the services were not comparable.

Crunch time for Flybe

BBC Radio 5 Live

Flybe plane
Getty Images

Regional airline Flybe Flybe has reportedly just enough cash to get through to the end of the month, as the troubled operator seeks a £100m lifeline this week from taxpayers.

Negotiations between airline executives and Whitehall officials took place over weekend, in the hopes of securing a government loan.

"It operates low-cost, almost taxi-like local flights," Justin Urquart-Stewart of Seven Investment Management tells Radio Five Live's Wake up to Money programme.

"They should be capable of operating it.... but they are routes with volatile numbers. Add to it an economic slowdown... and what have you got? Cash running out of the door."

Ryanair boss accuses Chancellor of 'breach of state aid rules'

Michael O'Leary

Ryanair chief Michael O'Leary has accused Sajid Javid of making "inaccurate and seriously misleading" statements about Flybe's finances.

The outspoken boss published an open letter on Twitter in which he claims the short-term tax deferral granted to Flybe known as a "Time to Pay" was a "breach of state aid rules".

He also hit out at Flybe's owners - including Richard Branson's Virgin Atlantic - by asking Javid: "If these billionaire shareholders are not willing to put their hand in their own deep pockets to bail out the loss-making Flybe, then why is your government and HMRC giving them a bail-out?"

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