Memorandum submitted by FlyBE
1. FLYBE. IN
NORTHERN IRELAND
FlyBE. warmly welcomes the opportunity to respond
to the Select Committee's inquiry into Air Services in Northern
Ireland. We believe that such an inquiry is timely, given the
importance of excellent air transport links to Northern Ireland's
economic development.
We are in a position to provide constructive
advice and insight to the Select Committee's inquiry, for the
following reasons:
— FlyBE. is the third largest low-cost
carrier in the UK and is European's largest independent regional
airline, with a long-standing commitment to providing air links
from Northern Ireland to mainland UK and continental destinations.
FlyBE. is different to other low fares airlines, as we offer services
from regional airports and operate on a point-to-point basis.
In 2003-04, flyBE. carried a total of over 4.5 million passengers.
We continue to expand rapidly.
— FlyBE., previously British European,
has been operating out of Belfast City Airport (previously Belfast
Harbour Airport) for more than 20 years. In terms of destinations
served, we are now the largest airline flying from Belfast City
Airport. We employ 200 staff in Belfast, including 27 at our on-site
engineering department, which are largely skilled engineering
jobs.
— FlyBE. expects to carry more than
one million passengers in and out of Belfast in 2004, to and from
10 direct UK destinations (London Gatwick, Birmingham, Bristol,
Leeds, Newcastle, Southampton, Exeter, Glasgow, Edinburgh, and
Isle of Man), as well as London City (via Isle of Man) and 20
international destinations via our UK hubs.
2. FLYBE.'S
FUTURE IN
NORTHERN IRELAND
Given flyBE.'s recognition of the importance
of regional hubs, we see Belfast City Airport as an integral part
of our overall region-based European route network. We are constantly
looking at ways in which we can improve and develop our services
from Belfast City Airport, in order to fully meet consumers' preferences
and demands. With no surface infrastructure connecting Northern
Ireland to the rest of the UK and Europe, flyBE. recognises the
value of accessible air travel to the economy, local enterprise
development, and the cultural life of the region. We are keenly
aware of the need to establish and maintain a comprehensive route
network, with the maximum number of connections to key destinations,
which serves the business community and Northern Ireland's rapidly
growing tourism industry. The economic development of Northern
Ireland rightly remains a key Government priority and flyBE. welcomes
the opportunity to make our contribution to this objective.
Our recent expansion in Southampton and Exeter
in the South of England demonstrates the tangible benefits which
regular and affordable air connections bring, not solely business
travellers and the leisure industry, but also in terms of the
indirect impact of investment flowing into regions.
FlyBE.'s aim is to connect Northern Ireland
with every key business and leisure destination in the United
Kingdom. Glasgow, Edinburgh and Exeter are just the latest cities
we have added to the route portfolio available to passengers from
Belfast, and a new service to the East Midlands will be launched
shortly. However, although flyBE. is willing to commit to providing
such a service, a number of impediments need to be addressed if
the full potential of improved transport connections is to be
realised. FlyBE. believes that recognising and addressing these
constraints should be a central objective of the Select Committee's
inquiry.
3. ADDRESSING
THE CONSTRAINTS
Having served Belfast City Airport for more
than 20 years, flyBE. has a unique insight into the airport's
future requirements if the development of air transport in Northern
Ireland is not to be stifled. FlyBE.'s long-term, and growing,
investment in the aviation industry in Northern Ireland has identified
further growth in the province as a key strategic priority. To
successfully build upon the success achieved to date, and to pass
on these benefits to the region's economy, there are areas of
policy where we believe progress has to be made if aviation (and
thus tourism and inward investment) in Northern Ireland is to
continue to develop and flourish.
(a) Flights/Seats Restrictions
As a low-cost commercial airline, flyBE. needs
to optimise the use of its aircraft fleet. At Belfast City Airport
there are currently two limiting factors to development.
(i) Restrictions on night/early morning flights,
after 9.30 pm and before 6.00 am.
(ii) A cap of 1.5 million placed on the number
of seats for sale from the airport.
Extending opening hours would allow flyBE. to
actively consider direct European routes using the last inbound
aircraft of the day, with the return journey early next morning
enabling the aircraft to be in place to begin the 7.00 am domestic
service.
FlyBE. takes its environmental responsibilities
seriously, both in terms of emissions and in terms of noise footprint,
and we appreciate the sensitivities and difficulties faced by
local residents in the airport's urban location. For this reason,
we have invested heavily in the Q400 Bombardier aircraft, which
is one of the quietest and most environmentally friendly aircraft
on the market today.
Recognising community opposition to the extension
of opening hours which would provide an obvious means of expand
air transport provision, flyBE. recommends a review of the airport's
capacity to support an expansion of flyBE.'s route network by
increasing the seats for sale limit currently set at 1.5 million.
Providing an artificial cap on demand does little other than stifle
the potential economic benefit that could result, and such a restriction
is actually damaging Northern Ireland's economy. It should be
reviewed urgently.
(b) Access to Belfast City Airport
The accessibility of Belfast City Airport, and
the time-saving achieved by regional air linkages, could be significantly
improved with the construction of a railway connection much closer
to the terminal than the existing Sydenham station, which is currently
the only viable rail option serving the airport. FlyBE. is keen
to emphasise the urgency of this accessibility issue, and recommend
that a timescale should be attached to its implementation.
(c) Government Taxes
Despite the growth in low cost airlines and
significantly reduced fares, passengers in Northern Ireland are
still disadvantaged by the amount of government tax paid on each
sector. FlyBE. recommends that the same form of subsidy is introduced
as that which operates under the Highlands and Islands Scheme,
and we believe that the Government should address this issue as
soon as possible.
(d) London Regional Slots
Although flyBE. is the leading regional carrier
providing access to domestic and continental destinations from
local airports, we continue to recognise the importance of maintaining
routes serving London at both Gatwick and London City (via the
Isle of Man), and the need to protect a regional presence at London
Heathrow.
FlyBE. therefore supports the retention of slots
at Gatwick and Heathrow for dedicated regional operators to maintain
and promote inward investment in the UK's regions, including Northern
Ireland.
(e) Route Development Fund
FlyBE. does not currently benefit directly from
the Route Development Fund, which was set up to encourage economic
development in Northern Ireland through the promotion and development
of new air routes. However, flyBE. is an enthusiastic supporter
of the initiative and we share its objectives of allowing business
to be transacted at a wider range of European cities, promoting
business linkages with the continent, improving competitiveness
by cutting travel times and encouraging inbound tourism to Belfast
and the surrounding region.
FlyBE. fully understands the importance of promoting
a more extensive range of routes to Europe from Belfast, but still
recognises that the majority of tourism-related income is derived
from visitors traveling from England, Scotland and Wales. FlyBE.
believes that the funding streams from this fund must be continually
monitored and evaluated to measure the real economic benefits
derived for the region as opposed to subsidizing holidaymakers
from Northern Ireland, which was explicitly not an objective intended
by the scheme.
4. CONCLUSION
Following the publication of the Government
Air Transport White Paper, the Select Committee's inquiry allows
for a more detailed consideration of the issues facing the provision
of air transport in Northern Ireland.
FlyBE. believes that the people of Northern
Ireland could benefit considerably by the expansion of air transport
links, both with other regions of the UK and, increasingly, with
key European regional hubs.
In order for this to become a reality and for
the people of Northern Ireland to benefit economically, key decisions
must be taken to remove many of the current restrictions at Belfast
City Airport. We call on the Select Committee to take this opportunity
to recognise this case, and to examine how the regulatory environment
could be reformed.
September 2004
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