Blue Islands wants to cut 'uneconomical' flights from its inter-island schedule

Rob Veron, Blue Islands CEO, said: 'We remain of the view there was already ample competition on the route between Blue Islands and Flybe. The oversupply into the market was already vast, with Blue Islands’ services running, on average, half full – meaning 67,000 seats were unfilled.

'Following previous price wars between operators on the route offering below-cost fares, large losses were incurred by both Aurigny and Blue Islands. Those market conditions were unsustainable. In recent years, the market size has also been going through a period of contraction. This is the result of reduced corporate travel budgets, pan-island office consolidation and the increasing use of video conferencing.

'Currently, Blue Islands provides up to 10 peak and off peak inter-island flights per day, serving the market at times when most people want to fly, while also providing flexibility by operating at times when fewer people have demonstrated a desire to travel and where those flights lose money.

'Prior to Blue Islands’ judicial review and the Transport Licensing Authority’s subsequent agreement that Waves required a licence to sell individual seats, Waves was operating illegally and the impact this had on market share was clear with no market growth. While Blue Islands supports competition, given the sub-scale nature of the market and the destabilising effect another competitor will have, we believe the wrong decision has been made. Therefore, because of the disappointing decision of the Transport Licensing Authority to award an unrestricted licence and introduce a third competitor into an over supplied market, Blue Islands is now applying to have its own licence stipulations removed.'

Given this level playing field, he said, Blue Islands would be able to 'adjust its schedule to serve the market at times of true demand and reduce uneconomical services that Blue Islands cannot be reasonably expected to sustain over the long term.'