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United Airlines to stop Belfast to New York flights United Airlines to stop Belfast to New York flights
(35 minutes later)
US airline United is to stop flights between Belfast and New York, months after a £9m rescue deal.US airline United is to stop flights between Belfast and New York, months after a £9m rescue deal.
The financial assistance was revealed by BBC News NI in August.The financial assistance was revealed by BBC News NI in August.
Most of the money, which was to be given to United over three years, was to come from the Stormont Executive. Two thirds of the money, which was to be given to United over three years, was to come from the Northern Ireland Executive.
The flight is the only regular direct air link between Northern Ireland and the US. The last departure from Belfast will be on 9 January.The flight is the only regular direct air link between Northern Ireland and the US. The last departure from Belfast will be on 9 January.
The last departure from Newark/New York will be the day before.The last departure from Newark/New York will be the day before.
It is understood only part of the £9m aid was ever paid to United and it will be recouped with interest. It is understood only part of the £9m aid was ever paid to United and it has now been refunded.
United said it had taken the decision because of the route's poor financial performance.United said it had taken the decision because of the route's poor financial performance.
"We will contact customers with bookings for flights beyond those dates to provide refunds and re-accommodate where possible. We apologise for any inconvenience caused," they added."We will contact customers with bookings for flights beyond those dates to provide refunds and re-accommodate where possible. We apologise for any inconvenience caused," they added.
The bigger story here is our understanding that it was the European Commission that blocked the £9m aid package, ruling that it was contravention of state aid rules. United's decision to axe its service between Belfast and New York is a setback for the airport and the Northern Ireland Executive.
It's my understanding that United was told this by the European Commission. But before now each had been mindful Europe could scupper a hastily arranged £9m rescue deal.
There's been no reaction yet from the Stormont Executive or government ministers, but the question will be, when they made the aid available, did they bother to check if it breached EU regulations? However, the gamble was considered worth taking, as without it United would have pulled out earlier.
The executive and Belfast International Airport would say they bent over backwards to accommodate United airlines when it wanted to end the route in the summer. Only part of the aid money has been paid and it has now been refunded.
It's also not yet known at this point how much of the £9m aid package that United had already received. Northern Ireland has long struggled to attract airlines on long-haul routes, while Dublin Airport rapidly expands its destination choices.
United's decision will not make the job any easier and at the very least is an undoubted knock to the prestige of Northern Ireland Plc.
However, Belfast International Airport said the flight is going because the European Commission blocked the funding package on state aid grounds.However, Belfast International Airport said the flight is going because the European Commission blocked the funding package on state aid grounds.
It added that the decision would be a "body blow" to Northern Ireland Executive ministers "who use it to promote Northern Ireland to would-be investors from the United States". The airport's managing director Graham Keddie tweeted that he was "absolutely spitting" about the decision which he blamed on "useless, faceless EU bureaucrats".
"To block a support package for an airline that delivers direct access to the United States is almost beyond comprehension," Belfast International Airport's managing director Graham Keddie said. In a statement he added that the decision would be a "body blow" to Northern Ireland Executive ministers "who use it to promote Northern Ireland to would-be investors from the United States".
"To block a support package for an airline that delivers direct access to the United States is almost beyond comprehension," Mr Keddie said.
'Emergency procedure''Emergency procedure'
"This is a bad day for the executive and a bad day for Northern Ireland, which is still finding its feet after a generation lost to conflict. The United service was well supported and only recently carried its millionth passenger."This is a bad day for the executive and a bad day for Northern Ireland, which is still finding its feet after a generation lost to conflict. The United service was well supported and only recently carried its millionth passenger.
"We have worked tirelessly to safeguard the service, but Brussels took a different view, believing the support package gave United an unfair advantage over services from elsewhere." "We have worked tirelessly to safeguard the service, but Brussels took a different view, believing the support package gave United an unfair advantage over services from elsewhere.
"The EU decision-making process is abysmal, biased and unfair and has resulted in the loss of this service."
Ulster Unionist economy spokesman Steve Aiken said the withdrawal of the service was an "international embarrassment".Ulster Unionist economy spokesman Steve Aiken said the withdrawal of the service was an "international embarrassment".
"We need to know what checks were made with the European Union over state aid and who took the decision that it was not an issue?" he said."We need to know what checks were made with the European Union over state aid and who took the decision that it was not an issue?" he said.
"This is a huge blow to our international standing and the minister must tell us what he intends to do to sort it out.""This is a huge blow to our international standing and the minister must tell us what he intends to do to sort it out."
In September, MLAs on the Public Accounts Committee (PAC) were told the deal got rushed executive approval in the face of concern about value for money.In September, MLAs on the Public Accounts Committee (PAC) were told the deal got rushed executive approval in the face of concern about value for money.
The NI Auditor General said Economy Minister Simon Hamilton issued a ministerial direction for the bail-out, which was endorsed by First Minister Arlene Foster and Deputy First Minister Martin McGuinness, "under emergency procedure".The NI Auditor General said Economy Minister Simon Hamilton issued a ministerial direction for the bail-out, which was endorsed by First Minister Arlene Foster and Deputy First Minister Martin McGuinness, "under emergency procedure".