Friday, January 23, 2015

Talk, Talk: Airlines

There has been talk, you may be aware, of the Balearics forming its own airline. Talk is likely to be all it ever is, whether such a venture might be viable or not, whatever routes such an airline might serve or not. One established airline that would probably be against the idea is Ryanair, whose commercial director David O'Brien, you will recall, was doing the rounds last week in the Balearics and the Canaries, celebrating thirty years of the airline. The Balearic Islands are not unique in there being talk of an airline. They're talking in much the same manner in the Canaries, and Mr O'Brien has added to the talk. It would not be a good idea, he said the other day. Not a good idea to open the market, which in a sense is a rather odd thing for a representative of an airline that has long trumpeted the need for open markets to say. He was, after all and on a different subject, raising an objection last week to the monopoly that AENA has on Spanish airports. But when it comes to the Canaries having their own airline, he is against the idea. He went on to say that Ryanair do what others claim they will do, inferring that such an airline wouldn't work, and then to highlight ways in which Ryanair has been successful: "the key to success is in treating the passenger well, and this is what we have been doing for thirty years".

Mr O'Brien's comments haven't been greeted with universal support. A contributor to "Preferente" magazine, for example, referred to the "hypocrisy" of the "Anglo-Saxons" when talking about customer service (the Irish, it might be said, are more Anglo-Celtic, but be this as it may) and to the Spanish air industry being "in the hands of villains". So, not a lot of sympathy for the Ryanair position there, but the same contributor went on to imply that he didn't have a great deal of sympathy for Spanish airlines either: "Im not going to defend the Spanish air industry". And this industry has seen its position whittled away to the point that it has lost any previous domination of the market and is mostly owned by foreign companies (those villainous Anglo-Saxons, or Anglo-Celts in the case of Willie Walsh).

Because it remains a significant, Spanish-owned player, Air Europa does stand out, and it has reinforced its position in the Balearics by announcing that it will start operating inter-island flights from May, so creating competition to Air Nostrum. Fares should therefore come down, though they are already subject to a form of capping because they are considered to be flights that are a "public service obligation". There had been a great deal of huffing and puffing by Air Europa, which at one point appeared to be going to pull out of any future inter-island service, but presumably the arguments it had with the national ministry for development regarding scheduling have been resolved.

Over on the mainland, Air Nostrum was helping to make history by providing the first flight to take off from the white elephant airport of Castellón in the Valencia region. It was a flight with 88 passengers, all of them supporters of Villarreal football club who were off to the match against Real Sociedad. The club expects to use the airport, as it will save time and money to do so. Whether Castellón does now become a fully operational airport, we will have to wait and see. Ryanair might take note. The airport fees will probably be very favourable.

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