Jim Shannon
Main Page: Jim Shannon (Democratic Unionist Party - Strangford)Department Debates - View all Jim Shannon's debates with the HM Treasury
(5 years, 2 months ago)
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Ms Ghani
Absolutely. Even though the airline sector is a tricky market to be in and it obviously favours larger airlines—for example, it is a little easier for them to buy fuel than it is for smaller airlines—my hon. Friend is right to say that competition is good and we should do what we can to support not only our airports, but our regional airlines.
Jim Shannon (Strangford) (DUP)
My hon. Friend the Member for East Londonderry (Mr Campbell) was in touch with the Minister to seek reassurances about this. Flybmi has said that its decision is predominantly an economic one; it was averaging only 19 people per flight, which is not sustainable for any company or business. The public service obligation air route, the first of its kind in Northern Ireland, has been in place since 2017, and the Minister has referred to it. I am thankful for the assurance that the Government will continue to subsidise the route until 2021. Will she please outline whether provision will be made to expand that commitment for a further two years beyond that to encourage other airlines to take on the contract and the route?
Ms Ghani
The hon. Gentleman makes an important point about the PSO, but it does run for this specific period, up to 2021. He noted that the Secretary of State has spoken to the local MP, the hon. Member for East Londonderry, and made a valuable point about the number of passengers per flight, which would have had an impact on the airline’s business model.