Full cost of airport work 'should not be passed to users'

PASSENGERS and airlines should not pay the full cost of airport runway repairs, according to consultants York Aviation.

The States faces a bill of around £80m. to bring the runway up to scratch, but the Policy Council's consultant said forcing airport users to cover that would damage the island's economy.

'If these costs were fully passed on to users of the airport through increased airport charges or direct charges to passengers, in our view such an increase in the cost of using the airport would lead to a reduction in demand and the range of air services available,' said its report.

'This would have a damaging effect on the island's economy more generally because of the impact on the tourism industry and because of the effect of reductions in the range and frequency of air services impacting on the attractiveness of the island as a business location.'

When the States rejected Treasury's borrowing plans to help fund projects such as the airport runway, part of the proposal members accepted was to generate more money from the airport.

One option was increasing air passenger duty by £1.95 on a single ticket. York Aviation said the impact of such an increase could be managed, but risked damaging the island.

'Increases in charges above these levels would, in our view, give rise to substantial damage to the economy of Guernsey as a whole.'

The consultant said there was a case for some level of funding for the runway repairs to come from the States - in effect, the taxpayer.