Heathrow price is flying high

The States’ decision to subsidise Flybe’s route to Heathrow to the tune of more than a million pounds a year was not taken in haste or ignorance.

Economic Development knew that it was effectively giving public money to Aurigny’s competitor, which would enable it to compete better with the taxpayer-owned airline.

The result was predictable – and predicted. Aurigny’s most-profitable route took a hit as thousands of passengers switched.

The airline’s losses quickly went from deeply worrying to catastrophic.

Today’s Budget lays the blame for that squarely at the feet of the decision to free up air routes for competition and subsidise the Heathrow service.

Aurigny’s balance sheet has gone from £3.6m. in the red last year to a forecast £7.6m. deficit this year and £9.6m. next year.

There are other factors in play, including crew and fuel costs, but the correlation is clear.

Understandably, Policy & Resources says this cannot continue.

Those who like to heap all the blame for the losses on the sagging shoulders of Aurigny’s management should consider why the figures have fallen off a cliff despite the same team being in charge.

They might also question why the States stopped publishing up-to-date monthly passenger movements for all destination airports in July after these were used to illustrate the problem.

The answer, not for the first time, is joined-up government. P&R wants a ‘coherent and co-ordinated’ framework for considering all aspects of air travel.

For there is little point in one States committee taking decisions that will cost another arm of the island government millions.

Heathrow has value both for leisure travellers and businesses.

But that needs to be quantified and judged against the cost to the taxpayers’ pocket in both subsidy and knock-on costs.

Without a coherent plan, the States is in danger of becoming its own worst enemy.