Airlines’ investigation moves to the next stage

The Channel Islands Competition and Regulatory Authorities acted in December 2016 after the airlines ‘failed to convincingly explain’ how the tie-up had benefited passengers.

In an update, Cicra chief executive Michael Byrne said the delay was because of the ‘great lengths’ it had gone to explore every alternative to formal proceedings.

‘Since we announced Cicra would be investigating the agreement between airlines Blue Islands and Flybe, it was considered appropriate to suspend proceedings while the airlines considered the various options open to them, informed by discussions with us,’ he said.

‘Following an extensive period in which we engaged at great length with the airlines to ensure all avenues, other than a formal investigation, had been explored, we are proceeding with the investigation and are now in the process of considering information requested to support that investigation.’

The regulator has said previously that at all aspects of the airlines’ fare structures, including ticket pricing, luggage allowances, routes offered and booking charges, would be reviewed.

‘It is important that we carefully examine the material already provided and ensure that both parties are given a fair hearing as part of this process,’ said Mr Byrne.

‘There is no presumption that the competition law in Jersey has been contravened, only that we have reason to consider it may have been. It is, therefore, important we give the parties every opportunity to state their case, which we have done and will continue to do.

‘When we have considered all the evidence a decision as to whether the case is dismissed or we proceed with a contravention will be made.’

A Blue Islands spokesman said the benefits to customers could be clearly evidenced.

A spokesman for Flybe said the airline was assisting fully with Cicra in its investigation.

Full story in today's Guernsey Press