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UBP: Poor projections led to flight cancellations

The Opposition has mended its gloomy outlook on tourism after two airlines cancelled flights between New York and Chicago, which it is blaming on Government.

Due to skyrocketing fuel costs, last week, Delta Air Lines announced it will not resume its seasonal New York La Guardia service in May, while United Airlines confirmed it too would not resume its twice-a-week service out of Chicago's O'Hare International Airport this summer.

However, Opposition Leader Kim Swan has linked the airlines' decision to a shortage in Bermuda tourism, specifically, poor visitor projections for this year. In a statement last night Mr. Swan contended: "We maintain that poor visitor projections for Bermuda this year were a factor in decisions to cancel these flights. The Government, in its March 18 statement on flight cancellations, did not actually refute our assertion that poor visitor projections factored into the decisions."

He highlighted that when an airline decides to cancel a flight it does so based on a variety of issues, filling the plane with people, he added, is the main one.

"Visitor projections are based on more than just advance reservations, as implied in the Cabinet Office statement.

"The decision as to whether an airline establishes or sticks with a flight can be complex, but it depends first and foremost on whether it can fill the plane with paying customers."

Last night, when contacted for the Premier's reaction to Mr. Swan's claims, Glenn Jones, Premier Ewart Brown's press secretary responded: "On this one the Opposition Leader isn't arguing with the Premier he's arguing with Delta and United. Those airlines have said recent moves, including offering buyout packages to employees, are a result of rising fuel prices not poor projections as Mr. Swan has proclaimed.

"Even in the wake of this airline news Mike Winfield, Bermuda Alliance for Tourism, has been optimistic on the upcoming season.

"He said: 'We do not believe that the loss of these services is critical at this time. 'As the hotel inventory begins to climb in future years, we will be needing additional flights without question but for 2008, we believe the service onto the Island is adequate during the May through August months.'"

Mr. Jones concluded: "The Opposition Leader appears to be as uninformed on this issue as he was the other day when he called for the start of an economic report that most people knew was already in the pipeline.

"I dare say this is like deja vu all over again. The Opposition Leader, and indeed the country, can certainly benefit if Mr. Swan does a little more research before speaking publicly."

But Mr. Swan insisted, in his statement, that the airlines' decision was motivated by other factors: "We maintain that visitor projections, which decision-makers calculate by drawing information from a variety of sources, factored into the decisions to cancel these flights.

"Indeed our point is underscored by the Cabinet Office statement which cites Mr. Michael Winfield, co-chair of Bermuda's Airline Committee, saying that hotels were asked to help subsidise the Chicago flight during 'the height of our season — May through Labour Day.'

"That Bermuda hoteliers were asked to help the airline in the high season when its flights should be enjoying their highest loads suggests the airline did not have confidence it could attract enough customers."

In the US, Delta said in a nationwide press release for the media that it would be reducing "select flights that cannot be profitable in light of the 70 percent to 80 percent increase in fuel prices experienced in the last year".

Commenting on United's decision to cut its seasonal service to Chicago, Airport boss Aaron Adderley revealed: "United was excited about the possibilities of a return this year. "(After) having seen incremental increases in passenger loads for the service, year over year for the past three years, but the cost of operating the flight — specifically the fuel cost of operating the flight — have proven to be too prohibitive at this time."

Mr. Swan figured if fuel costs were the only factor in deciding whether to continue a flight, it is assumed that more Bermuda flights would be cancelled because of rising costs.