Flybe plays down size of rescue deal as rivals step up criticism

Airline says that, contrary to reports, only a small amount of tax bill has been deferred

Flybe has admitted to having secured a 10m tax holiday and confirmed ongoing negotiations over a state loan, as rival airlines stepped up attacks on the government's rescue of the struggling carrier.

The Exeter-based airline said that, contrary to reports, only a small amount of its annual air passenger duty (APD) bill - believed to be 106m - had been deferred, in what it said was a standard arrangement for businesses in difficulty.