THE Government has agreed a deal with Flybe’s shareholders to keep the company operating.

Business Secretary Andrea Leadsom said she is “delighted” after the Government reached a deal to save Flybe.

She tweeted: “Delighted that we have reached agreement with Flybe’s shareholders to keep the company operating, ensuring that UK regions remain connected.

“This will be welcome news for Flybe’s staff, customers and creditors and we will continue the hard work to ensure a sustainable future.”

Transport Secretary Grant Shapps also welcomed the agreement.

He said: “Delighted we’ve been able to work closely with Flybe to ensure Europe’s largest regional airline is able to continue connecting communities across Britain.”

He added that the government will undertake an “urgent review” into how it can strengthen regional connectivity.

Earlier, Stockton North MP Alex Cunningham raised the impact of a potential Flybe collapses on airports like Teesside International as an urgent question in Parliament – sparking a furious response from Tees Valley Mayor Ben Houchen.

Mr Cunningham said: “Teesside international airport tripled its losses to nearly £6million under the stewardship of the Tees Valley Mayor last year – only a short time after he paid tens of millions of taxpayers’ money for it. Flybe is one of the few airlines providing flights from there – 44 per cent – and is critical to the airport’s future and the mayor’s plans.

“Is the government really prepared to continue failing the Tees Valley and see Flybe collapse taking regional airports like Teesside with it?”

But Mr Houchen dismissed the concerns as “scaremongering”, adding: “The Labour Party are salivating at the idea our airport could be in trouble. You can hear the delight in their voices as they talk our airport down. The negativity is breathtaking. Well I’m pleased to say they’re going to be disappointed.

“Our airport is doing just fine. It’s on target with our 10-year plan and whatever happens to Flybe no services will be affected from our airport.

“To be crystal clear, Eastern Airways operate the flight from Teesside to Aberdeen on behalf of Flybe. They will continue to run that flight and will be completely unaffected by what happens to Flybe as they own everything themselves, including the aircraft.

“You would think that the Labour Party would know who flies from our airport and that there is no impact on our airport, but they don’t really care. They still don’t get how important our airport is to the area.

“This type of scaremongering about our airport and taking any opportunity to talk it down - when what they say is completely untrue - is not helpful when we are in the middle of important discussions with airlines.

"We’re explaining to them how amazing our area is and why they should fly from Teesside across the world. It doesn’t help (and could set us back) when my opponents moan, complain and slag off our amazing airport. It especially doesn't help when what they say isn't true."