Air link subsidy ‘is vital’
Thursday 2nd September 2004, 12:00AM BST.
AIRLINES would need States help to develop new links with the Continent.
Leading tourism figures are calling for additional routes to Europe, particularly Paris. VisitGuernsey chief executive Stuart Pinnell said it would market the island heavily in the region if such a route were set up.
Aurigny and Flybe warned that it would not be viable unless there were substantial subsidies. But the States seems unlikely to offer more than it already does in route landing fees.
‘We believe that this route would be extremely marginal and it is our belief that the potential market size is not sufficient to have a multi-frequency daily operation,’ said Flybe general manager market development Ian Taylor.
He added that a new route would require at least 40,000 passengers per year to support about five services per week.
‘We have looked at the Guernsey-Paris route over the years but we do not believe that it could generate this demand immediately. As a commercial business, it would therefore not be something that we would recommend.
‘We support new route incentives as policy, but these have to be both significant in financial terms and be supportive of operational costs as well as marketing costs.
‘There has not been any evidence that we are aware of that Guernsey is in a position to meet these two criteria.’
Aurigny operates a year-round service between Guernsey and Dinard.
‘To date, our experience is that other year-round Continental routes have not been commercially sustainable in the long-term,’ said Aurigny marketing manager Ian Le Moigne.
The airline would work with VisitGuernsey to develop a new route, but sustainability was the key factor.
‘Aurigny is quite open about its interest in restoring a direct Paris service from the islands, but it would be a costly operation. If subsidies were made available, they would, of course, help mitigate those costs,’ he said.
Guernsey Hotel and Tourism Association president Carl Symes and other leading hoteliers have called for more routes to Europe.
The 2003 VisitGuernsey visitor report showed that last year the volume of UK visitors increased from 292,000 in 2002 to 307,000 in 2003 – an increase of 5%. Other overseas visitors reduced by a third, from 86,000 to 57,000 last year.
Mr Pinnell said Paris would be the most obvious route expansion for the island, which VisitGuernsey would be keen to market.
‘Paris is approximately the same distance from Guernsey as Birmingham. It is a huge international hub with flight links across the world and rail links to places such as Switzerland and Germany. It seems that if we were to have a new international flight, then Paris would be the best possible option,’ he said.
Mr Pinnell would not be drawn on whether States-backed airline Aurigny should operate the route, with possible losses underwritten by the taxpayer.
‘It would have to be a commercial decision of any airline to operate that route. If there were to be a flight to Paris, though, we would do a lot more marketing of the islands in Europe than we are doing at the moment.’
Commerce and Employment deputy minister Carla McNulty Bauer said: ‘We would encourage and support new routes to somewhere like Paris because I think they would benefit business, tourism and Guernsey people.
‘In an ideal world, everything would operate without subsidy, therefore we would encourage the airlines to consider operating without. There are a lot of other financial issues to be considered by the States, so I am not sure that subsidies for new routes are particularly high on the agenda.’
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