Ryanair: £1m and we’ll fly

[Flap40]

From Todays Jersey Evening Post:-

RYANAIR want up to £1 million a year in subsidies for 12 years to operate a service from Jersey to Stansted.

Details of their demands were made public this morning by Jersey Transport Authority president Deputy Alastair Layzell, in reaction to the Tourism Committee’s comments on the Oxera report into funding at the Airport.

Tourism president Deputy Imogen Nicholls had accused the JTA and Harbours and Airport Committee of a lack of innovation over their failure to attract low-cost airlines to the Island.

Deputy Layzell revealed that Ryanair were looking for a turnaround fee for a 737 aircraft of £100, rather than the £2,000 that Jersey Airport normally charges.

For that, they said they would offer a one-way fare of £45 and a return fare of £90 which Deputy Layzell said was not particularly cheap.

He said that the reduced landing charges could cost between £700,000 and £1 million per year in subsidies.

He said: ‘The Tourism Committee are playing to the gallery.’

[akerosid]

I have to agree with Layzell (and I promise, this is the only time) that FR's fare is a little higher than one might expect. FR needs to counter Layzell by stating that this concession WILL result in very significant passenger numbers; JER needs to do something to arrest a very serious decline in pax numbers.

Rumour has it that bmi still looking at JER-LHR.

Jersey's biggest problem is "too many cooks" - no one really knows who's in the driving seat. 4 different bodies either involved in or closely associated with tourism and transport and no clear leadership. It's just an elected civil service and as long as this continues, the downward spiral will continue.

[Ex Servant]

I hope they realise that reduced air fares will bring in more visitors. When I worked in the industry I spent many happy hours in JER and GCI. Since leaving and losing the concessions I haven't been able to afford to go back. Get a low cost carrier on the route an I'll be straight back.. . If I win the lottery I'll start my own low cost carrier flying between UK cities with a few ATR's! Till then I'll keep dreaming and suffering the trains. Anybody got any money and fancy creating some work?

[Flintstone]

Well......you know how to make a small fortune in aviation?

[Deadleg]

So I take it that this offer will be available to BA & BEA?

[hobie]

A one million pound reduction in charges at 1900 pounds reduction per turn round equals 526 flights .....

say an average of 125 PAS/flight, so no. of PAS = 65,750 .......

cost to Jersey equals 1,000,000 devided by 65,750 equals 15 pounds per PAS ......

doesn't seem too bad a deal for Jersey if Ryanair can meet the 125 average PAS load

[ 27 February 2002: Message edited by: hobie ]</p>

[Lucifer]

Subsidies have no place in a competitive market (or as close as possible to such), and if applied must be applied in like to ALL operaters to Jersey. Reduced fees for the airport are the only acceptable way of doing this: it is not as though they are subisidising a new route as such since others fly to London airports - it is helping an already lean operater move to a oligopolistic position on the route, which is what would happen if not applied in like to all.

[ETOPS]

Lucifer

"Oligopolistic" Wow!!

That's got to be a first on this admittedly august forum.

A splendiferous effort.....

[hobie]

Lucifer .... your being very cruel by using such words at this time of night ... lol .... anyway ...

Oligopolistic Competition - a competitive situation in which there are only a few sellers (of products that can be differentiated but not to any great extent); each seller has a high percentage of the market and cannot afford to ignore the actions of the others. See Monopolistic Competition; Pure Competition; Pure Monopoly.

errrrr .... yes ... I see what you mean .....