Guernsey Press

We do compete – Blue Islands, Flybe

TRAVELLERS do have choice and competition on the inter-island route, Blue Islands and Flybe have said, following a letter from the regulator which challenged the airlines on how they were offering customers value for money.

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The Channel Islands Competition and Regulatory Authorities chairman Michael O'Higgins sent an open letter to the two airlines last month, following the companies signing a franchise agreement earlier this year.

He was concerned about how reducing the competition was benefitting islanders.

But Blue Islands chief executive Rob Veron rejected the accusation that there was no competition on the route.

'Consumers can choose between flights operated by Flybe and those operated by Blue Islands, which are independently scheduled and priced,' he said in an open letter to Cicra.

'Each party is incentivised to gain maximum market share for itself. We do compete with each other, vigorously, and there is no reduction in competition. We also hope we have further clarified how consumers benefit substantially from the franchise arrangements, including features from which they could not benefit without the franchise being in place.'

Flybe's chief revenue executive Vincent Hodder backed Mr Veron's sentiment in his own open letter, stating that while their capacity overlapped on the inter-island and Southampton routes, they were competing.

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