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Old 30th May 2003, 21:23
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Charlie Fox
 
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BBC lunchtime news says that Air Southwest (aka Sutton Harbour Holdings) are in final negotiations re PLH - NQY - LGW flights.
Dot the i's & cross the t's!!!!!!!!!

The owners of Plymouth City Airport are setting up a new airline to run flights to London after British Airways announced it was pulling out.

Sutton Harbour Holdings today revealed it is in advanced discussions with British Airways about taking over the crucial Plymouth air services to Gatwick - including securing the vital landing slots.

The company has set up a new subsidiary, Air Southwest Limited, which it hopes will take over the Newquay-to- Plymouth-to-Gatwick link when BA pulls out in October.

Air Southwest is also talking about running services to destinations including France and Amsterdam.

The company is already in talks to buy Dash-8 aircraft similar to those currently used on the route by BA.

Duncan Godefroy, managing director of Sutton Harbour Holdings, said today: "We have been is discussions with British Airways CitiExpress for some time about the transfer of the Gatwick routes and slots to our new subsidiary Air Southwest, and those discussions are progressing extremely well.

"We remain committed to securing these vital air links for the region and hope to be in a position to make a formal announcement shortly."

British Airways announced earlier this month it would cease operating the Newquay and Plymouth-to-Gatwick routes from October 26 this year.

Plymouth's business community reacted with dismay, saying that losing the air link with London would be a major blow to the city's economy.

Air Wales, which already runs services from Plymouth to Ireland, soon announced its interest in taking over the route. It was considering its response to today's developments.

Air Southwest is headed by Malcolm Naylor, the Sutton Harbour group's head of aviation strategy.

He is a former managing director of Brymon Airways, which used to operate the Gatwick route but has since been incorporated into BA.

Mr Naylor said: "I'm very excited. It's good to be back in Devon and Cornwall. It may be obvious but we need airline activity to keep the airport running. It's absolutely vital we keep the links to London first and foremost. Without those links the airport would wither on the vine."

Air Southwest is investigating further services linking the South West to other regions of the UK and overseas.

The news comes as Sutton Harbour Holdings announced its seventh successive rise in core profits today.

Finance director Nigel Godefroy said only last week the closure of Plymouth City Airport could cost up to 2,300 jobs and £35 million to the economy.

He added that if the airport were to close and the Royal Navy's Flag Officer Sea Training organisation was to relocate to another airport, the region's prosperity would be hit hard.

Today Plymouth City Council leader, Cllr Tudor Evans, welcomed the news of the new airline. "The situation is now looking incredibly brighter than it was just a couple of weeks ago," he said. "Sutton Harbour Holdings are obviously very committed to Plymouth and the region and it is fantastic to see.

"From the city council's point of view, we welcome the efforts that are being made to secure the future of the airport.

"The most important thing to us is that the routes and slots are secure because we have a lot of investors in Plymouth who rely on these air links."

Charles Howeson, chairman of Plymouth Chamber of Commerce, described the announcement as 'excellent news'.

He added: "Sutton Harbour Holdings probably have a very good plan for the airport and obviously we must wish them well and support them to the hilt on this."

Plymouth MP and Transport Minister David Jamieson added: "If Sutton Harbour Holdings secures the air services in the future it will be extremely good news to everyone concerned. It will put an end to this period of uncertainty. Hopefully we can now not only look forward to the new service but also build on it for the future."

Plymouth's business community was united in welcoming today's announcement.

Chris Bailey, financial director of Roborough-based X-Fab UK Ltd, said employees used the airport as often as twice a week to travel to the firm's other sites in Germany and America.

After hearing that BA was pulling out of Plymouth, the company described the news as a 'backward step for Plymouth'.

However, after hearing the latest news, Mr Bailey said: "This is very positive news not only for Plymouth but for the region as a whole. For a company that has international customers it really is great news."

Steve Vickers, deputy managing director of Ernesettle- based Kawasaki Precision Machinery (UK) Ltd - which uses the service regularly - said: "It is great to see a company like Sutton Harbour Holdings is prepared to put its money where its mouth is to support the area.

"The news is sure to bring back confidence in the area and local businesses are sure to support the company in its approach. Air links to London are vital for us and other companies which look to fly in clients and managers on a regular basis."

Jo Hartop, head of communications at The Wrigley Company, said: "The protection of this air route is good news for Plymouth, the South West and for the businesses in the area."

John Taynton, spokesman for the South West Regional Development Agency - which last week agreed to £4.5 million of funds to Sutton Harbour Holdings for improvements to the runway at the airport - added: "This is very positive news for the South West region and we await further developments with great interest."
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