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North-south air flights grounded | North-south air flights grounded |
(30 minutes later) | |
Planes flying the north to south Wales air route have been grounded. | Planes flying the north to south Wales air route have been grounded. |
Highland Airways that operated the service has entered administration with Thursday morning's flight cancelled and no further bookings being taken. | Highland Airways that operated the service has entered administration with Thursday morning's flight cancelled and no further bookings being taken. |
Administrator Pricewaterhouse Coopers confirmed the company was "encountering trading difficulties." | Administrator Pricewaterhouse Coopers confirmed the company was "encountering trading difficulties." |
Deputy First Minister Ieuan Wyn Jones said the route was a "huge success" and the Welsh Assembly Government would take action to restore it. | Deputy First Minister Ieuan Wyn Jones said the route was a "huge success" and the Welsh Assembly Government would take action to restore it. |
Highland Airways was awarded a three-year contract to run the north-south Wales route from May 2007. | Highland Airways was awarded a three-year contract to run the north-south Wales route from May 2007. |
The service had £800,000 a year funding from the assembly government. | The service had £800,000 a year funding from the assembly government. |
Its financial problems came to light at the start of the year after the spell of severe wintry weather resulted in cancelled flights and a worsening debt situation. | Its financial problems came to light at the start of the year after the spell of severe wintry weather resulted in cancelled flights and a worsening debt situation. |
Welsh Liberal Democrat transport spokesperson Jenny Randerson said it raised serious questions about the assembly government and Mr Jones. | |
The unfortunate position of Highland Air has nothing to do with the performance of this route Ieuan Wyn Jones | The unfortunate position of Highland Air has nothing to do with the performance of this route Ieuan Wyn Jones |
"I am not surprised in the slightest. We have been warning for weeks that the Cardiff to Ynys Mon service was going to fall apart," she said. | "I am not surprised in the slightest. We have been warning for weeks that the Cardiff to Ynys Mon service was going to fall apart," she said. |
"How many thousands of pounds of taxpayers money has been put at risk in that time?" | "How many thousands of pounds of taxpayers money has been put at risk in that time?" |
The Conservatives transport spokesperson David Melding AM said: "We were always sceptical about the worth of this service. | |
"While we are committed to improving transport links between north and south Wales this air service was not the answer. | |
"Investing in road and rail services between north and south Wales is a far better way to improve transport links for the many, not the few. | |
"A great deal of assembly government money has gone into the Cardiff-Anglesey air link. | |
"While public subsidies are occasionally justified, our top priority is to secure a link from Wales to North America with a major carrier." | |
Highland Airways' staff - numbering about 100 - were called in at 0700 GMT to be told about the decision. | |
The 0730 GMT flight to Anglesey was cancelled on Thursday, Cardiff Airport has confirmed. | The 0730 GMT flight to Anglesey was cancelled on Thursday, Cardiff Airport has confirmed. |
Mr Jones said: "This service as been a huge success with almost 40,000 passengers using it since it started. | Mr Jones said: "This service as been a huge success with almost 40,000 passengers using it since it started. |
"It has far exceeded our expectations and we will now work tirelessly to minimise any break to flights. | "It has far exceeded our expectations and we will now work tirelessly to minimise any break to flights. |
"The unfortunate position of Highland Air has nothing to do with the performance of this route and the company's problems are related to its wider business. | "The unfortunate position of Highland Air has nothing to do with the performance of this route and the company's problems are related to its wider business. |
Easter holidays | Easter holidays |
"We are determined to keep the link operating and ensure there is minimum disruption to passengers." | "We are determined to keep the link operating and ensure there is minimum disruption to passengers." |
He said the assembly government would look for short-term tenders on Monday with the aim of restoring the service as soon as possible after the Easter holidays. | He said the assembly government would look for short-term tenders on Monday with the aim of restoring the service as soon as possible after the Easter holidays. |
"Our long term objective is to appoint a new operator with a four-year contract. We will be doing this through a further tendering process at the European level, " he added. | "Our long term objective is to appoint a new operator with a four-year contract. We will be doing this through a further tendering process at the European level, " he added. |
Highland Airways also operates air services to the islands and Scotland fisheries protection air patrols. | Highland Airways also operates air services to the islands and Scotland fisheries protection air patrols. |
Bruce Cartwright, joint administrator and head of business recovery services at PricewaterhouseCoopers in Scotland, said: "The company had encountered trading difficulties, including the loss of certain contracts." | Bruce Cartwright, joint administrator and head of business recovery services at PricewaterhouseCoopers in Scotland, said: "The company had encountered trading difficulties, including the loss of certain contracts." |
He said they would be working with contracted customers to ensure an orderly handover of services to new operators wherever feasible. | He said they would be working with contracted customers to ensure an orderly handover of services to new operators wherever feasible. |