One of the winners from a taxpayer bail-out of Flybe is a mega-rich American hedge fund tycoon who lives the high life in New York.
Stephen Freidheim, who controls Wall Street firm Cyrus Capital Partners, reportedly splashed out £20million on a two-storey penthouse on 5th Avenue.
Funds managed by Cyrus own 40% of Flybe, via a company in the tax haven of Luxembourg.
Mr Freidheim will doubtless be breathing a sigh of relief after a Government-brokered agreement allowed Flybe to delay paying its tax bill.
The Government is also set to review air passenger duty, and is reportedly considering a loan to the firm.
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Failure could have seen the airline go bust, risking more than 2,000 job losses.
It would also have hit Flybe’s backers, who have put £110million into the carrier since buying it last year.
Flybe is owned by Connect Airways consortium, which paid just £2.2million for its assets but also took on its debts.
As well as Cyrus it is made up of Virgin Atlantic, owned by billionaire Sir Richard Branson and US airline Delta, and Southend airport operator Stobart Group. Virgin and Stobart have 30% stakes. Mr Freidheim and Sir Richard made a packet in 2016 by selling Virgin America, the airline they co-founded.
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It is not known if Mr Freidheim, 55, put any of his own cash into Connect.
The Yale economics graduate founded Cyrus in 1999. It manages £3billion of assets.
He is said to have bought his 6,500 sq ft apartment in 2011.
It has a wood-panelled dining room, stunning lobby and a terrace with views of the city.
He and wife Amandine, 45, an art history teacher, are philanthropists.
Connect promised to put a reported £30million into Flybe after the bailout.
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Chairman Lucien Farrell said of the Government deal: “We are very encouraged with recent developments”.
Cyrus Capital Partners did not respond to a request for comment.
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The bailed-out airline has said a deal agreed with HMRC involves it delaying “less than £10million” of tax.
The company insisted the agreement would “last a matter of months before all taxes and duties are paid in full”.
The Government deal has sparked a backlash from rival airlines.
Ministers have also agreed to review the level of air passenger duty paid on domestic flights, which would boost Flybe.
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IAG, owner of British Airways, has complained to the EU the delayed tax deal breached state aid rules.
Willie Walsh, IAG boss, called it a “blatant misuse of public money”.
Ryanair boss Michael O’Leary labelled the deal a “grubby cover-up” and a “billionaire’s bail-out”.
Flybe chief executive Mark Anderson has told staff it was in talks with the Government about a financial loan, but insisted it was not a bailout.
The video is said to show Mr Anderson saying: “We are in conversation with the Government around a financial loan – not a bailout – a commercial loan, the same as any loan we’d take from any bank.”
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