Aer Lingus owner and Ryanair hit back at UK Government over Flybe rescue

Ryanair has said that a Government “subsidy” for Flybe “cannot comply with competition and state aid laws”.

The British Government is under mounting pressure to explain the deal it struck with struggling airline Flybe, as rivals demanded answers and threatened court action.

Ryanair boss Michael O’Leary threatened action against the Government if it did not offer a “tax holiday” to all airlines, after it was widely reported that Flybe had been allowed by HM Revenue and Customs to defer its monthly Air Passenger Duty (APD) payments.