Ryanair has written to chancellor of the exchequer, Sajid Javid, calling on him to extend the air passenger duty ‘holiday’ given to Flybe, to all UK airlines.
The deal was announced earlier this week and could see the regional airline defer up to £100 million in tax liabilities.
The news has met with opposition from rival airlines and environmental campaigners.
British Airways’ owner IAG has filed a complaint to the EU arguing the rescue breaches state aid rules.
IAG chief executive, Willie Walsh, described the decision as a “blatant misuse” of public funds.
At the same time, both easyJet and Ryanair have said taxpayer funds should not be used to save a rival.
easyJet chief executive, Johan Lundgren, said: “Taxpayers should not be used to bail out individual companies, especially when they are backed by well-funded businesses.”
Flybe is owned by a consortium of Virgin Atlantic and Stobart Air, with critics arguing the carriers are in a position to support the subsidiary.
Ryanair had previously called for more robust and frequent stress tests on financially weak airlines and tour operators, so taxpayers does not have to bail them out.
The Irish carrier added that the Flybe business model is neither profitable nor viable and…