The government is to discuss plans to cut the rate of domestic Air Passenger Duty (APD) later today, according to a report by the BBC.
The move is seen as a potential option to help save troubled regional carrier Flybe.
The airline was yesterday reported to be seeking to secure additional funds “to stave off collapse”.
Flybe operates nearly 40 per cent of British domestic flights, and over half of those outside London.
The carrier has previously stated that domestic APD rates (effectively £13 for a single journey) disproportionately affect its customers .
A potential plan would be to allow the airline to defer its APD tax bill for three years, which coupled with a reduced rate going forward could allow it implement a rescue plan.
Any move to cut APD would be welcomed by airlines, but is likely to be criticised by environmental campaigners however, as one of the stated aims of the charge is to offset the environmental impact of air travel.
It’s less than a year since a consortium led by Virgin Atlantic and the Stobart group agreed to purchase Flybe, promising to invest up to £100 million into the airline, and only a few months since plans were confirmed to rebrand Flybe as Virgin Connect.
The carrier operates around 75 aircraft, serving over 80 airports across the UK and Europe.