The high cost of flying to the islands for work trips has been attacked by transport experts who claim it is damaging business.
A document produced by the Highlands and Islands Transport Partnership (Hitrans) has said flight costs were discouraging firms from doing business on the islands.
Hitrans analysis concluded that use of air services were “suppressed by the very high fares” charged for business travel on non-public sector obligation flights.
As an example, in October 2019 fully flexible return fares on two key routes were £428 for the one hour flight between Stornoway and Glasgow and £416 for the 50 minute flight linking Aberdeen and Kirkwall.
The analysis found the cheapest return fares available for flights with timings suitable for business travel on those routes were £362 for Stornoway/Glasgow and £374 for Kirkwall/Aberdeen. But those tickets had to be booked 11 days ahead.
When booked up to 26 days ahead, Stornoway/Glasgow tickets still came to £231 and Kirkwall to Aberdeen came to £228.
Hitrans criticised the exclusion of business trips from the Scottish Government’s Air Discount Scheme (ADS), noting firms were not eligible for the 50% reduction.
The partnership pointed out that trading outside the Highlands and islands was vital for business based there because of the small size of market in their areas.
The organisation, which is statutory partnership covering the Western Isles, Orkney, Highland, Moray and most of Argyll and Bute, cited research which suggested two thirds of private firms the lack of ADS had a “significant negative impact” on business.
The document also outlined Hitran’s objections to freight charges on subsidised ferry services.
It said current single fares for large unaccompanied trailers (excluding VAT) were between £330 and £583 for Kirkwall to Aberdeen and between £351 and £615 for Scrabster to Stromness. The document has been submitted to the Scottish Parliament’s rural economy committee, which is scrutinising the Scottish Government’s National Islands Plan, which aims to regenerate remote economies and reverse depopulation.
A spokesman for Transport Scotland said the ADS directly tackled high air fares and was the highest possible discount under European regulations.
The spokesman said: “We widened the eligibility area for the scheme to include the entire Caithness postcode, as well as further parts of Sutherland. The Air Discount Scheme is designed for use by individual residents in the eligible areas as a means to facilitate improved social cohesion. It is not for the benefit of public bodies or private companies or to subsidise their travel costs.”
On freight charges, the spokesman said the system was under review.
He added: “Ferry freight fares are already heavily subsidised under the Clyde and Hebrides and Northern Isles Ferry Services contracts. Over £2bn has been invested in subsidising ferry services and investing in associated vessel and port infrastructure since 2007.”
