I referred
yesterday to my scepticism about the proposal put forward by Plaid that Wales
should have its own national airline, along with a network of regional airports
across Wales. There are a number of issues
with this proposal, to my mind.
The first
concerns general trends in the aviation industry. It’s an industry which has certainly seen a
great deal of growth in recent years, and that growth has been accompanied by
falling prices. And there is clearly
scope for continuing growth into the future.
But that combination of growth and falling prices has been achieved by a
mixture of consolidation of national airlines into multinational groups and the
rise of cheap low-cost airlines. There
is a history of specifically Welsh airlines - we did, of course, have Cambrian
Airways which was moderately successful, and which operated for almost 40 years
before being swallowed up by BA in an earlier period of consolidation in
1974. And we had Air Wales, in two
different guises, both of which hit financial problems and eventually ceased
operations, in the later instance citing spiralling costs and aggressive
competition. As a means of boosting the
range of flights from Cardiff Wales airport, setting up a new state-run airline
in a small country like Wales would be going against the flow, to say the
least. That isn’t a cast-iron reason for
not doing it, but it’s a pretty good reason for exercising a great deal of
caution.
Added to that
is that the proposal seems to be based on a supply-led, rather than a
demand-led, approach to increasing air traffic.
I don’t doubt that there are people in Wales who would like to be able
to fly to an increased range of destinations from Cardiff airport, but at what
point does that demand become sufficient to justify the prior expenditure on
providing the capacity? The experience
of commercial operators who’ve tried starting new services from Cardiff Wales does
not augur well. A national airline looks
like a potential way of diverting a large amount of government expenditure to a
loss-making enterprise. And that is in
the context of a government which has little control over its own revenue
streams and is legally obliged to balance its budget, meaning that significant
investment in an airline would inevitably impact other services.
Underlying those
problems is the question of the catchment area from which the demand arises. I remember a comment on a previous post about
expanding Cardiff Wales airport which came close to suggesting that I was being
unpatriotic by not enthusiastically supporting expansion; but we need to have a
degree of realism about the airport’s prospects. The population in the catchment area which it
is uniquely placed to serve is comparatively small, and is restricted to
Cardiff, the Valleys and points west thereof (and we need to remember that parts
of that catchment area are among the poorest parts of the UK, a factor which
inevitably constrains the current demand for air travel). For the North, the Canolbarth, and Gwent,
there are equally accessible (or even more accessible) competitor airports, and
that will remain true even after constructing improved communications routes
between north and south. Choice of
airport isn’t just about having a wider range of destinations, or about price
(let alone just about being patriotic); it’s also about convenience and ease of
access. The answer to the question ‘why haven’t we got direct regular flights
from Cardiff to destination X?’ is because there is currently insufficient
demand from within the unique catchment area to make such flights commercially
viable (unless they are replacements for, rather than supplements to, existing
flights to the same destinations from competing airports, and therefore able to draw on a wider catchment area). Setting up a loss-making state-run airline is
not the solution to that problem.
I don’t know
what to make of the proposal for a network of regional airports across Wales as
well as expanding the role of Cardiff.
If such airports are going to have their own short or medium haul
flights, then they will be direct competitors to Cardiff, and if they’re seen
as primarily the origin of ‘feeder’ flights into Cardiff, then they are just
about the least efficient and most environmentally damaging method of
transporting a (comparatively) small number of people around our country that I
can think of. This is exactly the
problem with the current north-south air link – it benefits few and is viable
only by the payment of a subsidy for each and every traveller. Better by far to improve Wales’ internal
surface transport (and especially rail), which was another of Plaid’s proposals
and one which I would entirely endorse.
And that brings
me on to my last, but far from least, point which is whether encouraging the
growth of air traffic is a good thing anyway.
I don’t want to stop people enjoying foreign holidays (that would be
hypocritical to say the least), nor do I want to create obstacles to foreign
trade (although I do want to try and re-localise business as far as possible). Both of those are likely to lead to slow
organic growth in the number and range of flights available from Cardiff. But actively encouraging the growth of air
traffic goes beyond either of those objectives, and seems a strange policy to
be coming from a party parading its environmental credentials. Part of my support for the building of HS2
(which I know appears perverse to many independentistas)
is that I see it as part of a high-speed pan-Europe rail network, and as an
environmentally preferable alternative to increasing short haul air travel. I want to see Wales benefitting from that
alternative as well, rather than trying to block its development.
Setting up a
national airline for Wales looks to me like a project aimed at boosting the semblance
of statehood, at what is likely to be a high cost. I’m more interested in attaining the
substance of statehood.