Stone still believes Wick/Edinburgh link can be saved as Loganair seeks support
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North MP Jamie Stone believes Loganair’s Wick to Edinburgh flights can still be saved – if a public service obligation (PSO) is introduced on the route.
He was speaking after Loganair chief executive Jonathan Hinkles revealed that the company would have to seek support from the UK Treasury in order to continue providing services to the Highlands and Islands.
Less than three weeks ago, the airline said it was ending the Wick/Edinburgh link after a steep decline in passenger numbers, exacerbated by a further drop in bookings caused by the Covid-19 outbreak.
“The news that we would lose Loganair’s Edinburgh to Wick service was devastating," Mr Stone said today. "I hope the Treasury will engage constructively in discussions with Loganair in the coming days and work with the Scottish Government to heed my request for a PSO to be implemented.
“Mr Hinkles has already indicated that if the Scottish Government were to implement a PSO at Wick airport, they would consider resuming the Edinburgh service.
"I have already urged the Scottish Government to do this and remain hopeful that they will see the value in supporting air services in the far north."
Loganair has more than 70 routes. Just weeks before the coronavirus crisis hit the UK it stepped in to take over a number of routes previously run by Flybe before it went into administration.
These included flights from Inverness to Belfast, Birmingham and Jersey.
Mr Hinkles said today it was fair that the UK Government had told airlines to look to shareholders and other lenders first in a bid for additional support.
“But [the Chancellor said] if you can’t bridge the gap after that, only then can you come and talk to us," he said.
“I do think that, like the vast majority of UK airlines, we will be going back to take up that invite for further conversation with the Treasury in the coming days, because we have to.
“This isn’t about deferring payments, it’s about getting rid of payments.
“What no airline can afford to do is rack up huge debts for the future that it’s going to have to service, because we are looking at a position even after this where the demand environment is going to be depressed for quite some time.”
Joanne Dooey, president of the Scottish Passenger Agents’ Association (SPAA), said: “The importance of Loganair and its contribution to the Scottish and UK economy should not be underestimated.
"Loganair operates lifeline services for the people of Scotland, especially those in the remotest parts of the country. It should not be forgotten that, in addition to flying passengers, Loganair transports essential medicines, mail and newspapers which would not otherwise reach those who need them.
"Loganair’s routes also provide the framework for connectivity from these areas to the rest of the world.
“As a provider of these essential services, the SPAA urges the Government to consider any application which Loganair may make for emergency support during these unprecedented times.”
Loganair's decision to axe its flights between Wick John O'Groats Airport and Edinburgh was announced on March 13.
The airline said the growth in services from Inverness Airport over the past couple of years had led to a "marked deterioration" in the number of customers using the Wick/Edinburgh route for onward connections to other parts of the UK and overseas.
Overall passenger numbers on the route fell from 11,357 in 2016 to 7632 last year – a decline of 33 per cent. As a result, the airline said, the viability of the route was under serious pressure even before a drop in demand caused by the coronavirus outbreak, which had seen bookings on the route fall by a further 17 per cent against the same time last year.
Loganair said a combination of these factors had rendered the route unsustainable "and in the absence of a reasonable prospect of the situation improving the sad decision to close it has now been taken".
Customers booked on flights to and from Wick after March 27 were offered alternatives of flights to and from Inverness, a refund or other re-routing options as may be available.
But Mr Hinkles said at the time: “Loganair is not ruling out the possibility of a return to Wick in future, and work has been ongoing between stakeholders for some time to identify options for a PSO order to be imposed on the route.
“Loganair has participated in a number of the reviews leading to proposals being tabled by local stakeholders to the Scottish Government recently. Should this result in the creation of a PSO, we would consider resuming services at Wick under that new structure.”
Caithness Chamber of Commerce has said Scottish Government ministers need to "step up" and match the work carried out by the chamber and others in compiling a business case for improved services from Wick John O’Groats for consideration by Transport Scotland.
- Loganair to axe Wick to Edinburgh service
- Withdrawal of Edinburgh connection will have 'significant impact', says Gail Ross
- Airport operator hopes Wick John O'Groats can still have a viable future
- Caithness Chamber of Commerce wants 'urgent action' after loss of Edinburgh service
