Inter-island flight cuts imminent in show of anger from Blue Islands

Saturday 21 July 2018

Prices will rise and inter-island flights will be cut as Blue Islands angrily reacts to a new policy to introduce more competition to Guernsey’s skies.

The ‘Open Skies’ policy, which means that airlines no longer need a licence to operate in Guernsey, was officially approved by the island’s government on Thursday.

Its aimed to introduce more competition and potentially encourage the opening of new routes.

Chairman and founder of Blue Islands, Derek Coates, had launched a blistering attack on the plan before it was debated, warning the airline would respond in ways which might be detrimental to the public. Mr Coates has so far spent £45m on Blue Islands. 

CEO Rob Veron added to those calls in an open letter.

Two routes were protected under the new plan: Alderney and Gatwick, which were labelled “lifelines”. But Blue Islands operate neither of these.

Now that the airline’s warnings haven't been heeded by Guernsey's States, Mr Coates has made good on his threat, and announced that from this winter the airline will be cutting flights to Southampton, and, crucially, the route to Jersey – another blow for inter-island travel.

Pictured: The news from Blue Islands of flight cuts and price rises is a major blow for already struggling inter-island travel.

“The regrettable unintended consequence of this decision is, as we advised, to change our business strategy and model. Therefore, because we are now no longer bound by licence obligations to operate some half empty winter flights, we will implement our Plan B, which we prepared in the face of this possible challenge arising.  It is with deep regret as an island airline, that part of this refocus will inevitably be the removal of all of the non-profitable off-peak flights in the winter months, that used to lose us money. 

“Passengers will in future have no alternative but to pay higher fares on the available seats that remain unsold on our revised winter schedule to help fill the empty seats on our aircraft. We will now be able to use the resulting aircraft availability to focus on the more profitable routes of our network, thereby maintaining our own business viability. 

"We apologise to the people of Guernsey that we will now be compelled to make these changes.” 

It is expected that the flights facing cuts will be those during the day, rather than at the peak times of early morning and after working hours.

The cuts from a high-frequency, year-round services would impact all classes of travel, Mr Coates said, with the leisure, business, sporting and medical travelers all now facing higher prices and lower levels of convenience. Up to five inter-island and Southampton rotations take place in the height of the summer season. 

“Blue Islands has in past years been able to invest in route development out of Guernsey and grown its business as part of its commitment to the Channel Islands, with some limited comfort from the protection that licencing provided, against the possible arrival of predatory summer entrants by other airlines,” Mr Coates added.