Contact us on 01851 705743 or
email info@welovestornoway.com

      Uist, Barra and Benbecula News

Donald MacKinnon MSP
Donald MacKinnon MSP, speaking previously at the Transportation Committee

Donald MacKinnon, MSP for Na h-Eileanan an Iar, has welcomed Loganair’s correction to evidence given to the Scottish Parliament’s Transport Committee on Wednesday.

Loganair acknowledged their remarks which suggested removal of the Air Discount Scheme (ADS) would not affect passenger numbers or the ability of islanders to travel were incorrect.

In a letter sent to interested MSPs following the committee meeting, Loganair accepted these comments made during evidence were "entirely wrong" and recognised the removal of ADS would reduce the number of island residents able to travel.

The company reiterated its view that the scheme remains one of the Scottish Government's most effective measures for supporting island connectivity.

Donald MacKinnon said: “It was illogical for Loganair to suggest ADS has no impact on passenger numbers. 

“I welcome the acknowledgment from the company that they misled the committee but it is disappointing that it took sustained scrutiny just to get this basic fact on the record from the company.

“If we want to improve island flights, we need honesty and an up-front discussion from all those involved to improve connectivity for islanders. 

“Stating that ADS has limited impact (on) the decision-making of island residents was not just at odds with the lived experience of islanders but contrary to reality.

“Trust in Loganair across island communities is already extremely low and this episode has only made things worse.”

Loganair bosses appeared before MSPs in Holyrood’s Transport Committee and committee chair Willie Rennie MSP also welcomed their subsequent correction.

Appearing before the committee, airline’s chief commercial officer, Ronnie Matheson, stressed they were “ultimately a private company who are operating these routes”.

However, the committee chair accused them of “abdicating responsibility for looking at the whole network as you have done before”.

LibDem MSP Willie Rennie also said the Air Discount Scheme and other forms of public support were increasing passenger usage and therefore making Loganair more profitable.

Mr Rennie said: “If ADS did not exist, the profitability of your company would drop.”

Simon McNamara, Head of Government & Corporate Affairs for Loganair, disputed this, saying: “I don’t believe so.”

Mr Rennie responded with disbelief, given some tickets cost six or seven hundred pounds.

Mr Rennie also welcomed Loganair’s later correction, saying: “In the committee, I was challenging the assertion from Loganair that the air discount scheme was only to the benefit of passengers and not the airline.

“It was clearly incorrect to say that higher prices, without ADS, would make no difference to passenger numbers, which is why it is right for Loganair to correct what they told the committee.  

“But the company now need to accept that ADS does increase passenger numbers and also their profitability. They may argue that this is not enough to make flights viable but they have to accept that it does help.”

During the committee meeting, Isles MP Donald MacKinnon also challenged Loganair about levels of confidence that the issues which led to the sudden withdrawal of the Stornoway-Inverness flights, due to resume on Monday, would not happen again.

Mr Matheson said: “We have re-opened discussions around what does next year look like. We will carry on these discussions. We don’t want to be in a position again where these flights are withdrawn.”

The route was restored after financial intervention from Scottish Government.

Mr MacKinnon also challenged Loganair bosses on insider claims the company had profited by increasing fuel surcharges while already having hedged against rising fuel costs.

Mr Matheson said: “Hedging as an instrument is extremely complex”.

Asked directly if they had profited from the fuel surcharge, Mr Matheson said they would report a lower per passenger profit that last year. “Our overall measure is that we will not be making large profits off the back of fuel surcharges,” he said.