‘If we accept this, what next?’: SIC chief hugely critical of Loganair decision to slash flights
LOGANAIR did not engage with Shetland Islands Council (SIC) before cutting weekday flights between Sumburgh, Kirkwall and Inverness from next month.
The airline made the shock decision in early June to reduce the Sumburgh-Inverness-Kirkwall service to weekends only from mid-July, citing rising cost pressures and a lack of financial assistance.
SIC chief executive Maggie Sandison was highly critical of the decision by Loganair to stop weekday flights from 19 July, while speaking at a Holyrood transport committee this morning (Wednesday).
She said the move “effectively cuts off Shetland and Orkney”, and called it part of a “wider pattern of erosion” to services to Shetland.
Loganair defended itself robustly, however, saying that the route had been losing money for as much as five years and that it needed to take immediate action.
The SIC chief said that Loganair had not spoken to stakeholders until the decision had been made, adding she feels “quite strongly” that consultations should have been held to ensure Shetland and Orkney’s emergency preparedness was not affected.
“This is a lifeline service that is being removed”, Sandison told the committee while giving evidence.
“We’re seeing more pressure on our already pressured ferry services, that is really the only route to Orkney through the week, and that service is already exceeding demand.
“We’re seeing an immediate impact.”
Sandison was not alone in giving evidence to the committee, with senior figures from the Western Isles – who are affected by the loss of flights between Inverness and Stornoway – also in attendance.
The meeting also heard from Highlands and Islands Airports Limited (HIAL) chief Paul Kelsall, who said there had been no discussions with Loganair about consulting with the affected communities.
Tourism impact
SIC chief Sandison said the decision was already having a major impact on tourism in Shetland, with a number of visitors cancelling their stays.
“Shetland is in high demand for visitors but our travel arrangements are constrained,” she said.
A flight between Shetland and Orkney, via Aberdeen, was on sale for £867 next week, she said.
“I can understand why people are considering not coming if that is the route they are having to take,” Sandison added.
“This will definitely have an impact on commercial and business activity. It will have an impact on contractors, technical personnel being able to travel.
“Travellers are cancelling trips to Shetland because of the decision to cancel flights. It’s impacting the economy in Shetland.”
Sandison said she believed the costs – estimated by Loganair to be £1.3 million for the two services – should be picked up by the Scottish Government.
“We do not believe lifeline services should be reliant on a wholly commercial arrangement,” she said.
“We have a concern we’re relying on commercial solutions for lifeline links. Cutting off weekday services just isn’t acceptable.”
The SIC chief said there seemed to be a “pattern of managed decline”, and also a “wider pattern of erosion and decline in our air services”.
A reduction in frequency, coupled with fares increases, were making air services in Shetland less attractive and less practical, she said.
“It feels to us that our islands are being treated as though we’re not contributing to Scotland, that we’re not part of Scotland.
“Our concern is, if we accept this what happens next?”
Committee convener Willie Rennie asked Kelsall why the government-owned HIAL did not simply approach the Scottish Government for more money.
He was left stunned when Kelsall said he did not have a direct route to speak to a government minister.
“I find this astonishing,” Rennie said. “Surely there is a route to government.”
Loganair decision ‘not taken lightly’
Later in the meeting Loganair officials strongly defended the decision, calling it a “temporary reduction” in services.
Chief operating officer Ronnie Matheson said the flights between Sumburgh-Kirkwall-Inverness would be reinstated in October if the gap in funding could be bridged.
He said this was “not a decision we want to make and has not been taken lightly”, but added that the service had been losing money for a “sustained period of time”.
The situation had deteriorated over the last year as the price of aviation fuel almost doubled, he said.
And Matheson added that with four airlines going under in the last nine months, Loganair had an obligation to protect its wider network.
The routes “carry no public subsidy whatsoever,” he said.
“Compare that to the ferry network, which receives sustained public investment and is treated as essential infrastructure.
“The same principle that lifeline connections require public backing when they cannot survive commercially has simply not been applied to aviation in Scotland.”
While he said there were alternative routes for Shetland, Orkney and Stornoway, Rennie commented that these were at “extraordinary costs”.
He said that people could fly to the USA and back for the same price as some return trips to Scotland’s islands.
There was also concern about the news that the aircraft currently used on the Western Isles and Northern Isles routes affected would be used instead for charter services in the coming months.
MSP Lloyd Melville questioned if it was fair to say that service would be “far more profitable” for Loganair than running passenger services.
“More profitable than leaving the plane on the ground,” Matheson replied.
“It’s absolutely nothing to do with the profitability of the routes.”
He said Loganair had made “as much stakeholder engagement as we possibly could”.
And Loganair’s head of corporate and government affairs Simon McNamara said the airline had made the decision to plug the £1.3 million gap as quickly as it could.
“As soon as that decision was made we went out to consultation,” he said.
McNamara said the level of consultation Loganair had carried out was “very unusual” for a commercial company.
He added that Loganair believed the decision for bridging the funding “lies with HIAL and the Scottish Government”.
Loganair officials are due to meet transport minister Stephen Flynn next month, he said.
If no funding solution can be found, Matheson said flights from October onwards – which are currently still on sale – would have to be taken off sale and refunded.
A decision on that would be taken in August or September, dependent on negotiations.
Rennie had the final word at Wednesday’s meeting, telling the Loganair pair that the committee was “not happy” with the lack of consultation – and urged them to take that message away with them.
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