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Flight subsidies - N Ireland

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Old 4th Sep 2003, 23:43
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Angel Flight subsidies - N Ireland

Expected news confirmed - www.belfasttelegraph.co.uk/news/business - any educated guesses on which routes/operators and which airports?
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Old 4th Sep 2003, 23:50
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Angry

The EEC has just told Strasbourg it was illegal to subsidise airlines BUT its OK for governments to do it?

What makes NI so different to other regions of the UK or Eire?
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Old 4th Sep 2003, 23:56
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Angel

Scotland & Wales have had similar subsidies for international routes for some time - only bringing NI into line!
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Old 4th Sep 2003, 23:58
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The announcement is great news for the province as a whole. For too long N.Ireland has been cut off from Europe, with passengers having to either interline through a UK hub or go via Dublin airport.

I have heard strong rumours that BHD will pick up a Paris, Brussels and one other - my guess is that it will be BMI/BMI Baby if they make the move down the road to BHD.

Easyjet will almost certainly be gunning for similar routes from
BFS.

Jetmagic and Air France are two others to look out for as possibles from BHD.

I also think Ryanair will start to come into the picture, although as to which airport only time will tell, they possibly have a greater chance of competition with Easyjet if they take the location advantage of BHD (much greater catchment area), plus TBI won't want to ruffle the feathers of Easyjet at BFS.

Although not sure how keen the residents in Sydenham will be on those old Ryanair 737/200 if that is what MOL has on offer.

10 DME ARC - my understanding of these recently announced subsidies are that they are for the airports in NI and not the airlines. There are to compensate for collecting smaller landing fees on these new routes.
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Old 5th Sep 2003, 00:03
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Subsidies are ok as long as they are open to everyone. The Strasbourg was different because the deal a) was only available to Ryanair (AFAIK) and b) drove an incumbent (Brit Air) out of the market
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Old 5th Sep 2003, 00:03
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10 DME ARC - my understanding of these new subsidies are that they are for the airports and not for the airlines. They are to compensate for collecting less landing fees on the new European routes.
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Old 5th Sep 2003, 04:36
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10 DME ARC

Public Service Obligation subsidies are paid by the Republic's govt for routes from DUB to KIR, GWY, SXL, CFN and LDY. All but LDY are Aer Arann licences, the latter Loganairs.

They are payable where no commercial operator is already flying the route.

In the Strasbourg case, the AF subsidiary claimed they were already on the route and the subsidy had the effect of pushing them off.

As for Belfast, it sounds like a job for a Jetmagic ERJ style operation, though it may all end in tears as they prove the routes and then the big boys snaffle the pax!
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Old 5th Sep 2003, 17:48
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Angel

To further comment on this issue, I note from this mornings press that BHD are citing Paris & Frankfurt amongst possible destinations - however, is not the ridiculously absurd annual passenger ceiling of 2.2m going to cause a serious obstacle to development of international and, indeed, domestic growth.

As far as I am aware this restriction was voluntarily agreed to by previous owners Bombardier who were, no doubt, under severe pressure from BFS who never seem to have been able to handle competition from BHD. The restriction would need to be substantially increased urgently or better still removed. If there is resistance to this from BFS then perhaps it would be an issue for the Competition Commission to decide on.

It is about time both airports were allowed to compete on a level playing field!
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Old 5th Sep 2003, 21:08
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ALLMCC.What makes you think that all new direct european routes will operate from bhd?.As the only airlines being mentioned are jetmagic bmi and so on what about mytravellite and easyjet.As far as i know, after my collegue spoke to a jetmagic fo last week at man, bhd-ork is their worst performing route and its future is not looking to healthy so why dont you just wait and see what happens.The world does not revolve around belfast city airport,or dident you know that??????.
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Old 5th Sep 2003, 21:44
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Angel

glynn-kayes

Just to set the record straight I wasn't suggesting that all continental routes should operate from BHD. Up to now our so-called international airport has been more obsessed with flooding the market with domestic services in a pathetic attempt to marginalise BHD. It should be obvious to them that this is not working.

It is about time BFS woke up and smelt the coffee! If they had expended as much time trying to establish international routes as they have trying to put BHD out of business then perhaps the subsidies would not have been required.

As for Jet Magic, whether they go or stay will hardly have a major effect on BHD.

As for BFS, the future does not revolve around them either - the success of BHD has proved that!
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Old 5th Sep 2003, 22:34
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ALLMCC,Im not havin a go at you personally but i must point out to you that bfs have for years been trying to persuade airlines to operate direct routes and a few have tried af bd sn and ei although ei i think were too hasty pulling the jfk route so fast after sept 11.As far as flooding the market with domestic flights,obviously ezy are winning hands down as every route they operate from northern ireland is the market leader.Lets face it,if the truth be known flybe only adopted the lcc ethos because ezy were, and still are thrasing them from belfast.I mean get real, a 737 versus a dash 8 and 7 lgw,s per day,now down to four and no stanstead and lcy via iom,but only in the morning.Ezy is now the largest operator from belfast and the largest mover of bfs/lon pax<or to put it in lay mans terms the largest mover of pax between belfast and london>also bfs lpl is the uks largest domestic route bar london.Also ferrovial are first and foremost a construction company who have just got themselsves a nice piece of prime dockland.Mmm.i wonder what the landscape around sydenham will look like in 10years time??????
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Old 5th Sep 2003, 22:44
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Angel

glynn-kayes

Thanks for that! accept what you are saying - however, perhaps you have overlooked BMI - they have just released figures for August which show an average load factor on BHD-LHR of 89%.

Easyjet frequently claim they are the largest carrier from Belfast to London - however, these are THEIR claims and have not been substantiated by any outside agency to my knowledge. Forget the hype - MOL has shown Easyjet to be somewhat economical with the truth on many occasions.

As far as Flybe are concerned, can't disagree with what you say - they do seem to have lost their way somewhat - perhaps the time is ripe for somebody new with a bit of fight and ambition to step in!
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Old 5th Sep 2003, 23:02
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Please note I didn't say Jetmagic should start flights from Belfast. I just meant some Belfast people should put their hands in their pockets and fund a startup CRJ/ERJ operator which serves Northern Ireland, since JetM started because we couldn't trust Dublin based operators mess us about.
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Old 5th Sep 2003, 23:17
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Just been confirmed, bmi to put A320s (156 seats) on in place of A321s (pos 195 seats) - bhd lhr - starting next week. Will run like this until the end of the winter schedule, when it says it "expects" the A321 to return.

Apparently, it is for the software to be updated on the A321. Without it, there would have to be more diversions to BFS to comply with new stricter Airbus guidelines re landings and weather.

ezy are close to having half the London market. Come the start of November, there will be 15 daily 737 flights from BFS to STN, LTN, and LGW (mon-fri)

By comparison, from bhd there will be 8 (mon-fri) with bmi to lhr and 4 (mon fri) with flybe on 146s to lgw.

It would be surprising if ezy weren't carrying more than 50-55 per cent of London traffic this winter.
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Old 5th Sep 2003, 23:29
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ALLMCC,i just saw the caa figures for the last quarter which every airline has to submit and ezy are no1 followed by bmi on bhd/lhr.in third is be and 4th fr ldy/stn,anyway its nice to have an argument with someone who keeps it light and dosent have to stoop to levels that others use by just thowing swipes at each other.As i said before we all should wait and see and i think there will be a few surpises on the way.My argument has always been 1 airport for northern ireland and airlines competing, not airports competing with each other.Northern ireland has too few a population for 3 airports trying to compete and belfast too small a city to feed 2 airports and that has kept continental operators from coming in to the province for years.Or if they have come in they havent lasted because how many times have you and i heard <oh the wee airports handy for me ,or, oh aldergroves handy for me>.Northen Ireland needs rationisation of airports and until then, and only then will we see an abundance of new routes lots of competition and for the first time the comsumer in the driving seat with his or her choice.
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Old 5th Sep 2003, 23:50
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Well said glynn-kayes.
I used to think there was a place for both airports, BHD regional/UK and BFS UK/EU and further but the situation has changed Belfast/Liverpool (as is much talked about) is a busy route, I would say not quite the typical regional route.

Airlines and airports have used the situation to their own ends - understanbly so that is business, but it has been to the detriment of the consumer.
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Old 5th Sep 2003, 23:55
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Angel

glynn-kayes

Thanks for that - as long as we make our comments constructive I agree - suggest we leave it at that and see what develops - unfortunately BFS is somewhat inconveniently located to Greater Belfast where most of the population is located. It also lacks a rail link and the road structure serving it is less than ideal.

Admittedly, these are factors beyond its control but it does explain why there is a healthy demand for BHD - as far as Ferrovial is concerned I think it unlikely they would spend £35m buying the airport and a further £6m on runway upgrading if they proposed to offload it.

On the separate post regarding BMI replacing the A321 with the A320 on LHR, I have been told that 2 or 3 extra rotations may be introduced to cater for the lower capacity of the A320.
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Old 6th Sep 2003, 00:18
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ALLMCC. Now if your talking logistics bhd is not more convenient to the majority of ni populatiion.Bfs, is, as it ihas a central location to the vast majority of people who reside in ulster.But please try and see the bigger picture.So,ok,bfs closes because of competition from bhd.We all end up with a regional airport with a very small runway and we all have to go on our holidays from dublin because bhd cant land a charter,or a 330 from toronto or a b767 from sanford.Thats why bhd has held back NORTHERN IRELAND PLC.Regional airport regional thinking.As i said 1 airport and more competition....Anyways its friday and im out to get absolutley blocked..hehe..ALLMCC enjoy your weekend,i certantly will>>>>>>>>>>>>>>>

ALLMCC, i think bhd now lacks a railtrack too?????????????????????????????????
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Old 9th Sep 2003, 17:59
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ALLMCC

I see you've taken to writing letters to the Belfast News Letter pleading BHD's case.

I think it'll take a bit more than that to get the planning restrictions lifted - a very messy public inquiry at the least.
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Old 9th Sep 2003, 18:31
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Angel

Uncle Monty

Do I detect a note of panic in your post! or perhaps are you running scared - after all this is traditionally the time of year when BFS gets a few shocks - remember 2001! I am quite within my rights to voice my opinions in the local press - free speech is still permitted to my certain knowledge.

As far as a public enquiry is concerned, please do remember that the restriction was not at the behest of the public in the first place so why should they be involved now? Simply a matter of BHD not allowing themselves to be bullied by corporate greed any longer.

Best to wait and see what happens in the next few weeks.
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