This morning’s Western Mail reports that concerns have emerged over the future of Wales’ flagship air service between Cardiff and Anglesey following news that the firm which runs it is in financial difficulties.
Assembly Government officials are understood to be disappointed that the only airline to put in a bid by the tender deadline last Wednesday was Highland Airways, the existing service provider which receives an annual subsidy of £800,000.
Airlines from across Europe were invited to submit bids to run the air service from May, when the current contract expires. But bigger carriers decided against doing so, despite early interest that is understood to have been shown by the likes of bmi, Flybe, Eastern Airways and Irish regional company Air Arann.
Passenger numbers have exceeded expectations since the service’s launch in 2007, and as a result the Assembly Government had hoped to attract airlines with aircraft larger than the current 18-seat Jetstream turboprops to fly the route. It is understood they were deterred from bidding by a lack of certainty that passenger numbers would grow sufficiently to justify the use of larger aircraft.
A further problem is that Inverness-based Highland Airways, the route’s current operator, has admitted it is in financial difficulties. The company has been restructuring its finances in recent weeks.
Assembly Government officials are understood to have been seeking alternative airlines to step in if Highland Airways is forced to suspend flights at short notice.
Commenting the Welsh Liberal Democrat Transport Spokesperson, Jenny Randerson said: “This news is concerning. We’ve already called for this service to be scrapped because taxpayers’ money pumped into this service could be used to help many more people access green, public transport. We need to be servicing the many, not the few.
“It is particularly worrying that only one bid was received by the Assembly Government. This does suggest that despite huge public subsidy, this service is still not seen as a viable, profitable and green solution to this key transport need.
“The Labour-Plaid government must seek full assurance of the financial stability of the private entity receiving this large public subsidy.”
Related posts:
