The rescue package for stricken airline Flybe has been criticised by a rival airline boss who has written to the Transport Secretary to question the deal.
Flybe's collapse was averted by the Government on Tuesday as it told the airline it would review air passenger duty as shareholders agreed to bring in extra multi-million pound investment.
The loss-making carrier, which flies from Manchester airport and employs around 2,000 staff, will continue operating following a review of the duty formed part of the rescue talks.
But environmental campaigners warned the Prime Minister, Boris Johnson, that any deal on air passenger duty would be "a complete scandal" and would "rip up" Mr Johnson's pledge to demonstrate leadership on the climate crisis.
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Meanwhile, Willie Walsh, the chief executive of the International Airlines Group - which owns British Airways - has written to Grant Shapps, the Transport Secretary, to question the deal.
Mr Walsh, in a letter seen by the BBC, asked why the taxpayer was being asked to foot the bill as one of Flybe's biggest shareholders is Virgin Atlantic, which in turn is part-owned by US aviation monolith Delta.
Flybe's shareholders have agreed to put in a further tens of millions of pounds to keep Europe's largest regional carrier in business alongside Government initiatives.
The airline refused to comment when asked if the Treasury had separately agreed to defer part of the airline's outstanding tax bill over a period of months.
It tweeted: "We are delighted with the support received from the Government and the positive outcome for our people, our customers and the UK.
"Flybe remains committed to providing exceptional air connectivity for the UK regions with the full support of its shareholders."
The emergency agreement seeks to stop Flybe following Thomas Cook's collapse just four months ago, in September 2019.
Chancellor Sajid Javid welcomed Flybe's confirmation that it will continue to operate as normal "safeguarding jobs in UK and ensuring flights continue to serve communities across the whole of the UK."
The Treasury said the air passenger duty review ahead of the budget in March will consider the UK's climate commitment to meet net zero greenhouse gas emissions by 2050.
Flybe's chief executive, Mark Anderson, said the deal was a "positive outcome for the UK" and it "will allow us to focus on delivering for our customers and planning for the future."
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The Transport Secretary, Grant Shapps, said his department will "undertake an urgent review into how we can level up the country by strengthening regional connectivity".
He said air passenger duty worked "slightly oddly", adding that "it costs twice as much to fly within the country as it does to fly, to for example, to France and back".
He clarified that the taxpayer had not paid any money to the firm.
It flies from Manchester Airport to Aberdeen, Inverness, Edinburgh, Exeter, Jersey, the Isle of Man, Newquay, Belfast City and Southampton, as well as a host of European routes.
Flybe has 75 aircraft serving more than 80 airports across the UK and Europe.
Flybe's shareholders Connect Airways, a consortium including Virgin Atlantic. Stobart Group and Cyrus Capital Partners, will provide more funding as part of the agreement.
Its chairman Lucien Farrell said it had been "very encouraged with recent developments, especially the Government's recognition of the importance of Flybe to communities and businesses across the UK, and the desire to strengthen regional connectivity."
Less than a year ago the company, whose headquarters are in Exeter, was bailed out by a Virgin Atlantic led consortium of buyers.
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