Airlines boss Walsh condemns UK help for Flybe

LONDON, Jan 15 (Reuters) - Willie Walsh, head of the British
Airways parent company, has attacked a government-backed rescue
of regional UK airline Flybe, calling it a misuse of public
funds.

Flybe was kept afloat on Tuesday after its shareholders
agreed to invest more money while the government provided
support, reported to involve the deferral of a tax bill.

Walsh, chief executive of British Airways-owner IAG
, criticised the government help for a privately-held
company, saying the taxpayer was picking up the tab for
mismanagement of the airline.

"This is a blatant misuse of public funds," he said in an
emailed statement.

British Airways competes against Flybe on some routes and
Flybe is owned by a group which includes Virgin Atlantic, a
long-term BA rival.

Under pressure to deliver on an election promise to help
improve transport links outside London, the government agreed to
help Flybe, in contrast to a similar test last September when it
took no action to help save the much larger travel company
Thomas Cook.

Flybe connects smaller UK cities such as Southampton and
Newcastle and its network of routes includes more than half of
UK domestic flights outside London.

Walsh has also written a letter to Transport Minister Grant
Shapps, said the BBC, outlining his concerns about the Flybe
deal.
(Reporting by Sarah Young; editing by Kate Holton)