"As with all member states we stand ready to discuss with the UK the compatibility and proposed public measures with the EU state aid rules," Arianna Podesta, a spokeswoman for the European Union's executive told a news conference.

"In general ... any state aid intervention needs to be designed so that competition is not distorted and a level playing field is maintained."

She made no further comment on the agreement to raise new funds for Flybe that was announced on Tuesday.

(Reporting by John Chalmers)