British Airways has now submitted a state aids complaint to the EU. I am no expert on the complexities of state aid policy, although in principle one is allowed to boost regional economies. The actual mechanism used by the Government in terms of airport passenger duty may, however, be open to challenge. In political terms the Government would probably welcome a row with the EU that saw it on the side of the regions against Brussels.
The writer on Sanday, Orkney: you can get there by plane, but I used the boat.
The intervention does, of course, raise questions about the Government's commitment to climate change policy. However, those in the south-west and the Scottish highands and islands would argue that the connectivity that Flybe provides is essential to their ability to do business and attract tourists. I must confess that I have a personal interest here as I use Flybe's Birmingham to Aberdeen flights (almost always nearly full) and then connect via Loganair to Grimsetter international airport, Kirwall, Orkney.
The flag of Orkney is based on that of Norway: you can fly direct to Norwegian destinations from Grimsetter.
A Greenpeace spokesman argued on Radio 5 that we should not be supporting unsustainable rural lifestyles. I don't think the growing number of people living in the Orkney Islands, with an economy in which innovation in renewables plays a key part, would see it that way. Island council officials have to fly to the centre of power in Edinburgh: it can't all be done by video links.
However, should one offer a general subsidy to all domestic flights in the UK by adjusting APD? Or should one subsidise particular services that serve a social need, as already happens with Newquay to Heathrow flights by Flybe? The policy objective may be desirable, but there may be more efficient means of achieving it.
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