Loganair told they are “not trusted”
Loganair have been told that their recent behaviour has created “distrust in communities” leading to a demand for “more control” over how the network operates.
The message came from the chair of Holyrood’s transport committee, Willie Rennie MSP, at the conclusion of an evidence session which subsequently led to an apology from the company.
It related to the claim, which was reported in last week’s Gazette, that the Air Discount Scheme does not affect the number of passengers carried on Highlands and Islands routes, and hence the profitability of the company.
After this claim drew expressions of incredulity, Loganair issued a statement admitting that they had “incorrectly suggested that removing the Air Discount Scheme would not affect Loganair’s passenger numbers”.
The statement added: “ADS makes flying more affordable for island residents, and its removal would reduce the number able to travel.
"We've written to the Committee to formally correct the record, and we remain fully engaged with government, councils and island communities on the issues raised’.
In response to the “distrust” reference, Loganair’s chief operating officer, Ronnie Matheson, said: “I don’t find it comfortable that distrust exists. I want to rebuild that trust”. He reiterated a commitment to examine fare structures.
Mr Rennie also highlighted the urgency of finding a long-term solution to the issue of Inverness connections to Stornoway, Kirkwall and Sumburgh following withdrawal of key services, vital for hospital patients, over the summer.
These were restored this week but only after the Scottish Government paid an additional £1.1 million, via Highlands and Islands Airports Limited, to satisfy Loganair’s demands. That agreement will again expire in March.
In evidence to the committee, the chief executive of Transport Scotland, Alison Irvine, appeared to suggest that current discussions will lead to the subsidy being continued but no announcement is likely prior to the Scottish Budget.
However, Ms Irvine insisted that fare structures are a commercial matter for Loganair to determine.
This drew her into further testy exchanges with Mr Rennie, who suggested: “There must be an anxiety within Transport Scotland that you are spending all this money – millions of pounds on ADS, on HIAL – and the public are concerned that Loganair are socialising the losses and privatising the profits?”
He asked: “Is that not something that would encourage you to act in a more interventionist fashion?”. Ms Irvine replied: “Commercial setting of the fares rests with the operator”.
On research which suggests that Loganair skimmed an additional £2.1 million on fuel surcharges despite having hedged against these costs, Mr Rennie asked: “Do you have any oversight on any of that? Do you investigate? Do you challenge?”
Ms Irvine replied: “I would say the answer to that is ‘no’ because it is not within the realm of where we can act”.