Another celebration will take place next month with the arrival of the first Lufthansa flight on the new weekly summer air route with Düsseldorf. But, in general, this is by no means a happy time for the aviation industry.

The high price of fuel followed by the sharp reduction in travel brought about by the economic contraction has hit all airlines and the vast majority of airports, including Inverness, are suffering from falling passenger numbers. This will make the recovery in global trade even slower, and the risk is that, because the Highlands and indeed Scotland are already served by fewer direct links, our economy will be left taxiing on the runway.

The Lufthansa service demonstrates the value of direct international air routes. Germany is Scotland's second largest international market for tourism, accounting for visitor spend of £123 million, and Highland tourism is already reporting that the link looks a success. But it throws into stark relief our lack of other regular direct access to mainland Europe.

The former Scottish Executive's Route Development Fund tackled this by providing financial support for the growth of Scotland's direct international air routes. Sadly, it had to be abolished two years ago following a ruling by the European Commission. The Scottish Government has attempted to replace it by marketing new routes to airlines, but this has proved inadequate at a time when airlines simply will not take any financial risks.

The welcome news is that this ruling has recently been called into question by a judgment from the European Court, and, in view of the challenge to encourage airlines to start new services, SCDI believes that there is now a strong case for the reintroduction of the fund.

Even a small fund that is well targeted could make a significant difference. For Scotland, flights to key long haul hubs in North America and the Middle East could be supported.

The priority for the Highlands, especially after the loss of the Heathrow service and the challenges in securing an Amsterdam route, would be European short-haul connectivity. So it is also timely that HITRANS, the regional transport partnership, is about to launch a major review of air services in the Highlands and Islands.

This could consider if the fund or another means would be best in incentivising airlines to operate such vital direct links.

A new fund will be one of the key proposals which SCDI puts to a meeting today with the first minister and Scottish cabinet. Alongside other business representative groups, we have been asked to share our views on charting Scotland's way out of the downturn.

We want the Scotland economy to take-off first and strongest after the current recession. If we are to deploy our economic strengths, as well as access to finance, our businesses need access to global markets. New international air routes give a big economic bang for comparatively few government bucks and SCDI will be urging ministers to support them.

Business News - only in Tuesday's Courier
Big-hearted employees donate blood
Talented youngsters in food industry to be included in annual awards
Business Diary

Printer friendly version

Email this article to a friend

Bookmark this

---