Flybe’s financial difficulties revived the longstanding debate on the need to reform the UK’s APD (airline passenger duty) system. In fact, the chief executive of the Airlines UK trade group asserted that Brexit creates the possibility to shelve or lower the passenger tax on domestic flights. Applying a lower rate for domestic flights amounts to illegal state aid, according to EU regulations.
“One of the advantages of leaving the EU is the possibility of cutting or removing APD on domestic travel”, noted Airlines UK CEO Tim Alderslade. The UK levies £13 per passenger departing from a UK airport for flights in the EU. Environmental groups criticized reports that the government might shelve or cut APD on domestic flights.
Collected and summarized from the source below by Minh Pham https://www.ainonline.com/aviation-news/air-transport/2020-01-14/flybe-reaches-rescue-deal-uk-government