INTRODUCING a compensation scheme for airline passengers without analysis would be “irresponsible” and could increase ticket prices or cause smaller carriers to go out of business, the Economic Development Minister has said in response to repeated concerns over a “loophole” for Jersey consumers.
Deputy Kirsten Morel said Blue Islands were “made very aware” by the government of concerns regarding their service in recent months following multiple delays and cancellations, which Deputy Morel said were due to the airline’s limited fleet and “dramatic changes” to global supply chains leading to delays in getting replacement parts.
Speaking at a Scrutiny hearing on Thursday, the minister said the airline’s brand had been “damaged” by the disruption but it was his understanding they were currently in “a much better position”.
There have been renewed calls for the government to close what Jersey Consumer Council has described as a “glaring gap” in protection for Channel Islands air passengers in the wake of the flight disruption.
Outbound flights operated by Channel Islands-based carriers are not covered by compensation laws EU261 or UK261.
Deputy Morel said around 13% of the total number of passengers travelling through Jersey were not covered by the compensation scheme.
The minister said he had “huge sympathy for all travellers who are put out when their flights are cancelled”, when asked by Economic and International Affairs Panel chair Deputy Monty Tadier specifically about passengers who were not entitled to compensation.
The government previously said that any Jersey scheme would need to be carefully considered “to understand the impact that it would have on route viability and ticket pricing”.
Deputy Morel told Scrutineers that it was likely a compensation scheme would increase the price of tickets.
“We need to understand what the impact would be on small carriers [Blue Island and Aurigny],” he said.
Deputy Tadier asked: “Should they not just be playing by the same standards as the other airlines that operate in the islands?”
Deputy Morel responded that he believed it would be “responsible” to carry out an analysis first, “because if you were just to put it on them, you may then see them go out of business”.
Asked when he expected the government to start this work, the minister said they had not started it yet and reiterated: “I don’t think it would be responsible to just bring in a compensation scheme without having done that analysis.”
Deputy Tadier said the “bottom line ” was there was a “loophole” that existed for Islanders who did not have the same cover in the UK or EU.
Deputy Morel responded: “Part of an economic problem that Jersey finds itself in is driven by the fact that we keep adopting rules that are made from much, much bigger states than Jersey.”
