‘No massive profit to be made’ inter-island

CUTTING air fares carries no guarantees that extra passengers will enable an airline to break even, the chief executive of Blue Islands has said.

Picture By Peter Frankland. 19-06-17 Chamber of Commerce AGM / Lunch.
Blue Islands chief executive Rob Veron speaks to Chamber director Barry Cash before taking the stage at a Chamber lunch. (Picture by Peter Frankland, 18646491)

‘There is no one-for-one direct relationship between our prices and throughput,’ Rob Veron said at a Chamber of Commerce lunch.

‘If we drop fares 10% we wouldn’t see an increase in passenger numbers by 10%.’

Mr Veron outlined the degree of losses incurred while competing on the inter-island air route with Aurigny, which Blue Islands now runs with only modest competition from franchise partner Flybe.

He said that those days had created ‘false expectations’ of price on inter-island travel.

‘The inter-island service has evolved from a small aircraft-high frequency model, which created false expectations of the Channel Islands market.

‘With seats from £25 one-way, both parties would have been losing £1m. a year.

‘Now we have moved away from that to a situation with some refinement in the market into a position with a sustainable level of supply, and a price point which mitigates loss and covers costs.

‘There is no massive profit to be made inter-island.’

Comments for: "‘No massive profit to be made’ inter-island"

Why

I'm sure the route is profitable, but running 40 seater planes doesn't help the situation.

Inter-island needs to be run like a bus, the Trislanders were perfect.

Alvin

Flybe / Blue Islands : Lowest fare Guernsey to Jersey = £39.99

Aurigny : Lowest fare Guernsey to Gatwick = £29.99

Need I say more ?

Passenger numbers between Guernsey and Jersey in 2016 was 13 % less than the previous year.

Not surprising eh ?

The standard fare structure throughout Flybe network also has a lower no-luggage fare... but not the inter-island route.

There are now less flights than before, with less seats available, less seats sold and yet Blue Islands are happy now that they are making a profit on the route.

But the cost to Guernsey's tourism industry is immeasurable.

Rupert Walthumstow

Agree with the sentiment entirely but I am curious if those figures include taxes?

And what percentage of seats are available at that prices in each (I appreciate this isn't readily available but I suspect it would be favourable to Blue Islands).

wallygator

Mr Veron you are so out of touch with the average islanders.

No one is asking for a £25 each way flight but just a set price like Aurigny used to do and more flights per day.

I have just had a quick look at the flights mid week to Jersey on a day return for one person and it is £64.99 each way. So a total of £129.98 for a day trip.

Not really realistic is it, most people could put up with £70 -£80 for a day return but not this.

If a family wanted to take their 2 children down to Jersey for the day to see the zoo it would cost them £519.92. £320 would be high enough but not a chance at your prices.

Things will obviously change once Waves start up but this should be sorted before.

Yourselves and Aurigny run excellent services but the cost to us is getting out of most peoples reach.

nonlocal

Ha

Waves have already indicated a price of between £120-150

They are only interested in the suits

wallygator

nonlocal

You are probably right and I don't think I would like to travel on a single engine plane until it has really proved it's self.

No one is expecting really cheap inter island prices, but more flights and a bit lower price would be a start.

donald

Maybe its the weather - and it is not going to get any better as Mr T Rump would say!

Devil's Advocate

The question is, was it profitable when Aurigny were running the Trislander shuttle service? What were the costs then, and what would they be in 'today's money' as it were?

I'm sure an ATR running fewer trips is more profitable than a Trislander shuttle, and that is the 'problem'.

An AI Forever

guernsey is all about greed, now the gravy train is over the commoners are up in arms, but dont forget what they charged as tradesmen,small shops,retail and commision in the finance industry for mis selling

karma always bites back

Mars

It seems that the basics of supply and demand that I learnt in the 80's haven't reach Blue Islands yet