THE subsidy deal between the States and airline Bmi is under investigation by the Island’s competition regulator.
And that means that the Jersey Competition Regulatory Authority (JCRA) is looking into a decision made by the minister with political responsibility for the authority itself. Economic Development Minister Philip Ozouf signed the deal with the airline to pay a subsidy for it to start flying twice daily from Jersey to London Heathrow back in March It is a three-year agreement but the amount of money to be paid by the States to the airline for flying the service has never been publicly revealed. Rival airline Flybe complained to the competition regulators in both the UK and Jersey about the subsidy on the basis that it would skew the London air market and give Bmi an unfair advantage over its competitors, including Flybe.
Article posted on 19th May, 2007 - 12.00am
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