Guernsey Press

Heathrow: will taxpayer be a winner?

THE continuation of the Heathrow link until the end of March will be welcomed by many.

Published

But whether the government subsidy offers value is another question all together – and one that can only properly be answered with more transparency.

Air travel numbers have been published up to the end of July.

They show that 12,812 passengers have used the route, and it has grown each month - from 2,837 in April to 3,577 in July. It amounts to a direct subsidy per passenger of some £38.

They also show that Gatwick, still by far and away dominant with a total of 180,694 in this time, is on the fall, down 3.59%, or 6,724.

There are also fewer people using Stansted, down by 11.83% or 1,811.

That all presents something of a headache for States-owned Aurigny as it tries to break even.

The new Southend route has also grown in popularity in the summer, a total of 5,082 passenger have used it.

It is good news for the travelling public, with the competition to London and other destinations serving to drive down flights costs.

But the subsidy costs, both direct and indirect, are less clear.

There has as yet been no confirmation of what it cost Economic Development to secure Heathrow across the winter, while things like landing fees are also not in the public domain.

Supporters of Flybe’s entry into London may argue that it will drive Aurigny to be more commercially minded and competitive with its pricing, but if things go too far and it puts the number of flights it operates in Gatwick at risk.

Aurigny is making a significant investment in its fleet with three new ATRs on the way at a time when another arm of the States is wounding its numbers through providing a subsidy it was not willing to offer to the local airline.

There is a lot to like about having a Heathrow link, not just for the business community, but for islanders heading off on long-haul flights too.

For now, it is a waiting game to see if Economic Development’s strategy pays off, not just for the air traveller, but for the taxpayer too.