MercoPress. South Atlantic News Agency

Gibraltar/MoD/Air Monarch landing rights controversy

Gibraltar lashed out at both the Ministry of Defence and air carrier Monarch as the row over increased local airport operating costs intensified.

In a strongly worded statement, Convent Place condemned the MoD, arguing that the manner in which the implementation of increased air landing charges has been carried out was "indefensible and reckless with Gibraltar's interests".

Monarch also came under fire as the Gibraltar Government rejected their arguments for withdrawing the Manchester service, while warning that it will "not succumb to pressures from airlines into part financing their business models," regardless of whether this is accompanied by threats. It also attributed the airline's decision to the expiry of a MoD two-year landing fee discount for the Manchester route.

In a statement No 6 Convent Place rejects as "totally unsustainable and unjustified," remarks by the airline that their decision has been due to dithering or procrastination by the Government.

A Gibraltar Government spokesman rejected the allegations stating that what they had done is not to succumb "to Monarch's demands and expectations."

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

The Convent Place statement continued: "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 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."

Gibraltar "has condemned the MOD for the totally unreasonable and un-business like 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 not challenge the MOD'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 is in discussion with the MOD about ways of avoiding the adverse, far reaching and unpredictable consequences of the implementation of their unilateral and un-consulted 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."