No.6 Convent Place says it supports Ministry of Trade and Industry

No. 6 Convent Place has come out saying that "it fully supports the handling by the Ministry for Trade and Industry" on the MOD landing charges and Monarch Issue.

A Government statement adds: No 6 thus rejects as totally unsustainable and unjustified the statement by Monarch that their decision has been due to dithering or procrastination by theGovernment.

The Government has neither dithered nor procrastinated. What the Government has done is that it has not succumbed to Monarch?s demands and expectations.

The Government says it also rejects the reasons given by Monarch for withdrawing the Manchester service in July, which Monarch has said is because of the high cost ofoperating to Gibraltar.

Gibraltar Airport costs payable by an airline for a flight from Manchester are the same as for a flight from Luton, yet Luton is said to be unaffected.

The more likely reason for Monarch?s decision is the expiry late last year of the Manchester route?s two year landing fee discount which the MOD gives to a new route.

Monarch thus became liable to the full landing fee, as they knew all along would be the case.

This, adds the statement, has coincided with the MOD?s quite extraordinary methodology in introducing a sudden increase of more than 8% in landing charges as from 1st January, coupled with notice that they intend a further 25% increase in July, back-dated to 1st April 2006. The Government has condemned the MOD for the totally unreasonable and unbusinesslike manner of implementing its sudden decision to immediately end 45 years of British Government policy of meeting some of the cost of civilian flights using the airfield.

While the Government does notchallengetheMOD?s objective to end this subsidy, the manner and timetable of its implementation is indefensible, wholly unbecoming of a Government, and reckless with Gibraltar?s interests.

The Government goes on to say it is in discussion with the MOD about ways of avoiding the adverse, far reaching and unpredictable consequences of the implementation of their unilateral and unconsulted decision to raise already very high landing charges in this manner.

In these circumstances, which are known to Monarch, it is quite extraordinary that

Monarch should aim its fire at the Gibraltar Government when they are well aware that this is an MOD decision, outside of the Gibraltar Government?s control.

It is not the policy of the Government to subsidise low-cost airlines or any other airline providing services to Gibraltar whether, through discounting passenger taxes or otherwise and that policy will not change. It appears to be the practice of some low cost carriers to pressure governments around Europe into part financing their business models. The Gibraltar Government will not do so and will not succumb to such pressure, whether put privately or publicly, or whether or not it is accompanied by threats of services withdrawal, the Government statement ends.





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