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Flybe sells Gatwick take-off and landing slots to Easyjet Concerns over Flybe's Gatwick slots sell-off
(about 2 hours later)
Flybe has announced the sale of all its take-off and landing slots at London Gatwick airport to Easyjet for £20m. Business leaders and politicians have raised concerns over the future of Inverness's links with London Gatwick.
A three-times-a-day service operated by Flybe is in doubt following the airline's decision to sell all of its take-off and landing slots at Gatwick.
Easyjet, which also operates a Gatwick-Inverness service, is set to take over the slots next March in a £20m deal.
There are worries that the frequency and timings of the Inverness connections will be affected.
The Inverness and Scottish chambers of commerce, the Scottish Council for Development and Industry, Highland Council and politicians are among those raising concerns.
The sale is part of a cost-cutting programme for the airline. About 600 workers have been made redundant and pilots have agreed a 5% pay cut.The sale is part of a cost-cutting programme for the airline. About 600 workers have been made redundant and pilots have agreed a 5% pay cut.
Easyjet said it was looking at the possibility of maintaining some of Flybe's Inverness to Gatwick links. Flybe serves a number of destinations directly from its Gatwick hub, including Belfast, the Isle of Man, Guernsey, Jersey, Newcastle and Inverness.
Local MP Danny Alexander and Inverness Chamber of Commerce have voiced concerns. The airline said the deal was subject to shareholders' approval and that it would continue to operate all the slots until March 2014.
Flybe serves a number of destinations directly from its Gatwick hub, including Belfast, the Isle of Man, Guernsey, Jersey, Newcastle - and a three-times-a-day service with Inverness Airport. Stewart Nicol, of Inverness Chamber of Commerce, said the availability of connections at the moment meant Highland firms could do a day's business in London.
Mr Alexander, the chief secretary to the Treasury and MP for Inverness, Nairn, Badenoch and Strathspey, said: "These connections are absolutely vital for the Highland economy, and this announcement will clearly cause uncertainty for local businesses and the staff involved. Drew Hendry, leader of Highland Council, said he hoped Easyjet would recognise the importance of the Flybe service to the region's economy.
"The fact that this change will not take effect until the end of March next year does give some time to resolve the issues."
Mr Alexander said he had made Transport Secretary Patrick McLoughlin aware of the importance of maintaining the link.
Easyjet operates flights from Inverness to Gatwick and Luton.
A company spokesperson said it was looking into the possibility of maintaining some of Flybe's Highland links with London.
The spokesperson said that Easyjet was already committed to serving Inverness and carried twice as many passengers as Flybe to London each year.
Flybe said the deal was subject to shareholders' approval and that it would continue to operate all the slots until March 2014.
Fraser Grieve, the Highlands and Islands manager for the Scottish Council for Development and Industry (SCDI), expressed concern about the deal and called for urgent steps to safeguard the flights.Fraser Grieve, the Highlands and Islands manager for the Scottish Council for Development and Industry (SCDI), expressed concern about the deal and called for urgent steps to safeguard the flights.
He said: "Flybe's decision highlights the vulnerability that regional routes into London face as a result of a lack of capacity at Heathrow and Gatwick Airports and the financial value of these slots.He said: "Flybe's decision highlights the vulnerability that regional routes into London face as a result of a lack of capacity at Heathrow and Gatwick Airports and the financial value of these slots.
"The air connections to and from Inverness are vital economic links and the move to Easyjet will likely result in both a loss of service and a lack of competition on the route.""The air connections to and from Inverness are vital economic links and the move to Easyjet will likely result in both a loss of service and a lack of competition on the route."
He added: "The UK's leading international gateways must be able to accommodate the economic needs of the whole of the UK.He added: "The UK's leading international gateways must be able to accommodate the economic needs of the whole of the UK.
"Oil and gas services and food and drink in the north are two of the UK's leading exports and they must be able to reach overseas markets. Tourists and investors must also be able to get to the north of Scotland.""Oil and gas services and food and drink in the north are two of the UK's leading exports and they must be able to reach overseas markets. Tourists and investors must also be able to get to the north of Scotland."
Stuart Nicol, of Inverness Chamber of Commerce, said he was worried Flybe's services would not be maintained. SNP MSPs have accused Lib Dem MP Danny Alexander of "hypocrisy" in a political row over the future of Gatwick-Inverness links.
Liz Cameron, chief executive of Scottish Chambers of Commerce, said the airline had for many years been providing a "key link" to London and the south east of England for businesses across the Highlands. Mr Alexander, who is MP for Inverness, Nairn, Badenoch and Strathspey and chief secretary to the Treasury, said "astronomical increases" in landing charges at Gatwick had hit Flybe hard.
She added: "We will be engaging with politicians at both Holyrood and Westminster to ensure that this situation regarding air connectivity to and from the Highlands is addressed as a matter of urgency." Mr Alexander said: "Last year's Civil Aviation Authority investigation changed nothing, but we need to press Gatwick to think again in the light of the damaging economy impact.
The SNP reacted to comments made by Flybe about "punitive levels" of Air Passenger Duty meaning not one of its services to Gatwick had returned a profit over the last year. "There is clearly an opportunity for Easyjet to strengthen its Inverness to Gatwick services, but keeping early morning and late evening services will be critical for business, as will the ability easily to connect onto international flights."
Inverness MSP Fergus Ewing described the sale of the slots as a "hammer blow". He added: "I welcome Easyjet's positive commitment to building on its Inverness connections, as well Flybe's commitment to maintaining its other services."
'Working tirelessly'
However, the SNP said the cost of the UK government-levied Air Passenger Duty (APD) was to blame and had hampered Flybe's ability to make its links profitable.
Fergus Ewing, SNP MSP for Inverness and Nairn, said: "The loss of these services would be a hammer blow for the Highlands.
"The Inverness Flybe service is the one used by Danny Alexander to get to Westminster - and now it is being withdrawn, in part because APD is too high.
"That is because of the taxation policies of Danny Alexander's own government - and he is guilty of the most appalling hypocrisy on this issue."
Liz Cameron, chief executive of Scottish Chambers of Commerce, said that both Scottish and UK governments had failed to protect the Gatwick-Inverness link.
She said: "Government action is required north and south of the border to help to sustain and grow Scotland's aviation market.
"Our airports are working tirelessly to serve the needs of Scotland but they are being hamstrung by a lack of support from government.
"Our politicians at Westminster and Holyrood need to recognise the critical role that our air links play in our economy and deliver the right environment and support for both the airports and airlines."
Easyjet said it was looking into the possibility of maintaining some of Flybe's Highland links with London.
A spokeswoman said Easyjet was already committed to serving Inverness and carried twice as many passengers as Flybe to London each year.