Approach open skies policy with ‘a degree of caution’

Michael Byrne, chief executive of The Channel Islands Competition and Regulatory Authorities, suggested a ‘pragmatic’ approach was the way forward for the island when he was asked about the issue at the Chamber of Commerce’s August business lunch held at the Old Government House hotel.

His comments come after the States approved a quasi open-skies policy in July that means airlines will no longer need an air transport licence to service Guernsey routes – with the exception of London Gatwick and Alderney, which have been designated as lifelines.

‘I wonder whether there is a good balance in terms of the debate that’s going on, which is that we need to protect certain routes and see how it goes,’ said Mr Byrne.

‘That does seem striking, to me, a cautious and pragmatic way forward.

‘Open skies in principle, if you’re a free market economist, you would say: “Go for it”. But you always have this challenge, which economists never have to face, which is we are starting from where we are.

‘You have to acknowledge that and then you move on from that.’

The chief executive of Cicra, which has aviation responsibilities in Jersey but not Guernsey, also compared the two islands airports.

‘It is interesting to walk through the Jersey airport.

‘I know it’s bigger, but it’s far more vibrant.

‘Then you look at the Guernsey situation, and you look at the scale that is involved, and I think there is a real challenge.’

He added: ‘I wouldn’t answer the question overtly with an open skies is a good or bad thing, but it does seem to me that there’s a pragmatic way forward that doesn’t mean you throw the whole thing up into some quite disruptive approach and hope it lands well.

‘It’s all very well if you are talking about cola drinks, but when you are talking about the very lifeblood that connects islands, you have to approach that with a degree of caution.’

During his address to the Chamber lunch, Mr Byrne also announced that new innovation licences allowing companies to develop and test new 5G technology in the Channel Islands are being launched.

‘One of the things that we will announce this week is the issuing of innovation licences.

‘New technology is coming. We want to make sure that Guernsey is in a position to use this new technology,’ said Mr Byrne.

Under the licences, local firms will be able to access part of the frequency spectrum for a period of time to encourage collaboration and innovation around 5G technology with a view to developing services that ultimately benefit islanders and businesses.

Cicra has been working in cooperation with UK regulator Ofcom to facilitate the innovation licences locally.