* Business minister says deal reached with Flybe
shareholders
* Officials meet to discuss possible cut to domestic flight
tax
* Flybe operating as normal
(Repeats to add Reuters instrument code; no change to text)
By Sarah Young and Alistair Smout
LONDON, Jan 14 (Reuters) - Regional airline Flybe will carry
on operating after the British government struck a deal with
shareholders to avert collapse, business minister Andrea Leadsom
said on Tuesday.
Flybe flights operated as normal on Tuesday, a day after the
emergence of reports suggesting it needed to raise new funds to
survive through its quieter winter months.
"Delighted that we have reached agreement with Flybe’s
shareholders to keep the company operating, ensuring that UK
regions remain connected," Leadsom wrote on Twitter.
"This will be welcome news for Flybe's staff, customers and
creditors and we will continue the hard work to ensure a
sustainable future."
Leadsom did not give details of the deal and the business
and finance ministries did not immediately respond to requests
for comment.
With Flybe's finances at breaking point, Transport Minister
Grant Shapps held talks earlier about a potential cut to air
passenger taxes on all domestic flights to help the company.
Prime Minister Boris Johnson said that Flybe is important
for Britain's transport links and that the government would do
what it could to help the carrier.
The BBC reported that negotiations could lead to a cut to
air passenger duty (APD), while Sky News said there could be a
deal to allow Flybe to defer an APD payment of more than 100
million pounds ($130 million) for three years.
Flybe, which has 68 aircraft and about 2,000 staff, was
bought last year by Connect Airways, a consortium created by
Virgin Atlantic, Stobart Group and investment adviser
Cyrus Capital.
(Reporting by Sarah Young and Alistair Smout
Editing by Kate Holton, Mark Potter and David Goodman)
