From UK Airport News
Last ditch talks took place yesterday between Flybe and the Jersey authorities over a Channel Islands - Paris air link.
The airline wants £750,000 over two years to launch the route. Guernsey have agreed to a subsidy, but Jersey was prepared to only offer £150,000, however they are now willing to increase the amount to £180,000.
Jersey's Assistant Economic Development Minister Alan Maclean, who has responsibility for its airport said: 'Flybe has agreed in principle to our counter-proposal.' He said that Jersey would offer marketing assistance and a subsidy based on the number of inbound passengers. It would also offer reduced landing charges.
Maclean added that Flybe accepted the principle behind the performance-related incentive and also had given assurances about its commitment to the route.
Flybe Chief Commercial Officer Mike Rutter confirmed the meeting had been very positive. He said: 'The 'Jersey' States were only prepared to offer £150,000 which is not enough to cover the projected £1.5m losses in the first year.'
At the outset Flybe asked for £800,000 subsidy from the two islands, but that has reduced to £750,000 because the price of oil had fallen. It is normal for a low-cost airline to ask for support.
Rutter added: 'We are looking for a 50:50 share. We have decided to work within the political structure set by Jersey and in return they will have another look at the total funds available and get back to us within 48 hours.'