GUERNSEY’S Transport Licensing Authority is to be congratulated on showing so much common sense and pragmatism in relation to the first set of applications for air route licences they’ve had to consider for several years.
In effect, they’ve indicated that they think both the Guernsey-Jersey route and the one between the island and Southampton are simply too thin to sensibly support two operators in competition.
They are absolutely right. I know that for some the mantra that ‘competition is always a good thing’ amounts to some kind of holy text, making it tantamount to an act of blasphemy to question it. While I am usually willing to accept that wisdom in relation to large scale market places, it is often complete nonsense when applied to sub-scale markets. Not just in relation to transport links – but let’s stick with that for the moment.
Southampton is not just another UK regional airport as far as Guernsey is concerned. It is our prime access point to the tertiary medical care which it is impractical to provide on-island. That is the only reason that it was designated a ‘lifeline route’ and is subject to a licensing regime.
Given this crucial importance, of course we should seek the most robust possible service on the route. Carving it up in a way which undermines any sensible business model is not a good way of achieving that. Yes, I know that for several years past we did have two airlines flying from Guernsey to Southampton, but that was an accidental outcome of Covid. They found that the only way either could make the arrangement work was by not competing at all, but instead entering a messy code-share which was sub-optimal and which few really understood.
When the States of Jersey effectively decided to collapse Blue Islands, leaving Aurigny as the sole operator on the route, it made perfect sense to take advantage of that slightly sad development to revert to a sole operator.
Should that operator have been Aurigny? Well of course. Firstly, they were the incumbent and there would have been no justification for withdrawing their licence. Secondly, being owned by the people of Guernsey makes it so much more certain that this absolutely crucial route will continue to be served going forward.
The Jersey route was less straightforward. There was no incumbent. But Aurigny was the first to step in when the plug was pulled on Blue Islands. They had no heads up that this might happen. Their fares were considerably lower than Loganair’s. Their application went in earlier, and the accompanying paperwork submitted to the TLA was far more convincing.
Add to that the simple fact that few would argue that the best ever inter-island service we’ve known was back when Aurigny was the sole operator, and it’s puzzling to know why some, particularly in Jersey, seem a tad upset with the outcome.
I can sort of see why, from a Jersey perspective, Guernsey being the sole arbiter of who can fly between the islands might rankle. But to be fair, it was Jersey who took the firm decision, many years ago, to adopt a totally open skies policy. Personally I think they were wrong, but I respect their decision.
What we all now await with bated breath is whether or not Aurigny can recreate anything like their legendary service of old. The initial timetable of two rotations a day may not augur well but give it time. In their application they clearly stated an intention to supplement the peak morning and tea-time flights with extra rotations during the day using Twin Otters. I know introducing such a service will take time but I sincerely hope they stick by that plan.
Successive States have recognised that the very nature of our micro domestic market makes it almost inevitable that many of our service providers are going to be near-monopolies.
If a public monopoly can sometimes have feet of clay, they don’t tend to be half as bad as private monopolies.
In a nutshell I want to be cheerleader for the alternative mantra that ‘competition is often a bad thing in a sub-scale market’. It can carve up slender returns in ways which makes investment and modernisation almost impossible.
Often it is far better to engage with a single service provider on the basis of a meaningful service level agreement.