States seek comments on Air Route Licensing

The Commerce and Employment Department has released a Report it commissioned from the OUR on the future of Air Route Licensing and is asking for comments on the report from individuals and other interested parties.

In November 2008 the Commerce and Employment Department commissioned the Office of Utility Regulation (OUR) to undertake a strategic review of air route licensing for Guernsey.

The review was commissioned against the background of:

The outcome of the consultation process on the Regulation of Transport (Air and Sea) Links Briefing Paper undertaken by the Department in early 2008;

The increasingly challenging economic and fuel price conditions that developed over 2008 and the impact this was having on the aviation industry generally and on those operators of services to Guernsey in particular;

The Department’s dual responsibilities for air route licensing and route development;
Licensing issues related to specific routes that exposed perceived shortcomings in the licensing process and the way in which it is administered.

The attached Report from the OUR was received by the Department early in the New Year and was provided concurrently to the main operators of passenger air services to Guernsey. The comments of those operators have been received but the Department now wishes to undertake a wider consultation.

Comments are invited on the report in general but the Department would particularly welcome responses to the specific questions posed below. Respondents who are commercially involved in the provision of air services (the Department will accept further submissions from operators) are requested to provide financial and economic information to help inform the Department’s consideration of the issues. Commercially confidential information will not be disclosed to any third party.

Comments should be submitted in writing or by email to the addressees given below to arrive no later than the 20th February.

Following this date the Department will consider what action it needs to take under the current air route licensing legislation and associated policy statement and/or whether a report should be submitted to the States recommending changes to the legislation and policies.

Question 1. Comparisons with other jurisdictions (Section 3 of Report)

Given the population and economy of the island what are your views on the adequacy or otherwise, in terms of diversity of routes, frequency of flights and number of operators, of air services to and from Guernsey compared with other similar jurisdictions and what do you think is achievable in maintaining and expanding those services?

Question 2. Protection from Competition and Provision of Financial Support (Section 4 and Appendix 3 of Report)

What are your views on seeking to maintain or expand air services to Guernsey by protecting important but commercially marginal routes from competition and, if necessary, providing financial support through a form of Public Service Obligation awarded to an operator through an open and transparent process?

Question 3. Open Skies and Licensing (Section 5 of Report)

Other than in relation to safety, insurance etc., what are your views on whether or not there should be any conditions imposed on the operation of all or some air services to Guernsey and the impact either option could have on maintaining or expanding those services?

Question 4. The OUR Recommendation (Section 5 of Report)

What are your views on the “light touch” approach recommended by the OUR and which would be reviewed after 3 years?

A covering paper and the OUR Report can be downloaded from:

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