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Turbulence ahead?

Betsan Powys | 11:09 UK time, Monday, 25 January 2010

highlandairways.JPGA word of warning: if you live near Ynys Mon and have an important meeting in Cardiff next week, or if you live near Cardiff and want to head up North, your secretary might have a bit more trouble than usual in booking you a flight.

Why? Because if you go to the Highland Airways website you'll find you can't.

Again then, why? Because in the last few minutes Basil O'Fee, the company's Commercial Director, has confirmed that the company is experiencing problems and are seeking new investment. They've suspended website bookings as a precaution but are confident that within the next hour, there'll be a press statement making clear how the problems can be resolved.

Is that it for the service nicknamed "Ieuan Air?" It doesn't seem fair, does it. The company who operate it get an annual subsidy of £800,000. The minister responsible for handing over the money gets stuck with a nickname you imagine he could live without.

One expert suggested this morning that in his realistic view, the service is 'dead-ish.'
Passenger numbers have exceeded expectations - 28,900 over the first two years - but let's be blunt: if bigger airlines thought that figure meant it was worth putting on larger planes that would attract more passengers and make more money and need less subsidy, they would have applied to run the service themselves. They haven't. So is it Highland Airways or bust?

The Assembly Government, who - let's face it - have rather more than £800,000-worth of prestige riding on this scheme - say they want to emphasise that even if the company go into administration, Ieuan Air will not be grounded. Highland Airways would continue as a going concern so that a buyer can be sought. In the medium term, they're 100% committed to the North South Airlink.

You could suggest your secretary takes a look at instead - and no, the link wasn't sent care of anyone who is a known fan of the airlink - or perhaps start composing a letter asking the Assembly Government just how confident they are that the £800,000 they've paid out per year so far has been worth it.

UPDATE

Here's the statement from Highland Airways in full:

"The company is currently facing difficult trading, most recently exacerbated by the severe winter and resultant reduced flying and reduced income.


The Board has been seeking new investment, and has been in discussion with several parties in recent weeks.


Negotiations are ongoing with a potential investor that provides an excellent way forward for the company.


The outcome of all these discussions should be judged within days rather than weeks.


In the meantime the company continues to trade normally fully supported by all our staff.


The company continues to enjoy the support and encouragement of its many stakeholders and customers.


Highland Airways delivers niche aviation solutions to a diverse range of customers across the UK. These include subsidised air services between Cardiff and Anglesey, Stornoway and Benbecula in the Outer Hebrides, and Oban and the Inner Hebrides. Other activities include aerial work, newspaper delivery to some Scottish islands, corporate staff shuttles and air charter".

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