A report investigating the cost and necessity of the Cardiff / Anglesey air link has been published by the National Assembly’s Public Accounts Committee, ahead of a decision by the Welsh Government on whether the service should continue.
The service has been running twice daily weekday flights since 2007 and has been financially supported by a subsidy from the Welsh Government, aimed at supporting services that “would not otherwise be commercially viable”.
These funds have currently been capped at £1.2 million after an increase of £300,000.
The service has carried 65,073 passengers between May 2007 and April 2013 at a total estimated expense of £9.01 million, when running costs and terminal development are taken into account. Passenger rates have also fallen by 43% since their peak in 2008-09.
The Committee has strongly recommended that, if the service is to continue, a comprehensive marketing strategy should be undertaken by the successful new bidder in an attempt to improve uptake and recognition of the service.
The marketing budget currently stands at £20-25,000 and activity has included attending the Swansea and Anglesey air shows and regular radio advertising. While initially successful, the Committee would like to see this improved, in order to once again maximise value for money, such as promoting the available connecting bus service and flights to other destinations.
Discrepancies between data surrounding passenger numbers contributed by the Auditor General and the Civil Aviation Authority were noted by the Committee. The Committeehas recommended an independent verification of the figures along with analysis of passenger data, to create a clearer picture as to who is using this route and whether fares are taxpayer funded.
“The Committee remains concerned that this service is underperforming when it comes to providing value for money for the Welsh taxpayer,” said Darren Millar AM, Chair of the Public Accounts Committee.
“The lack of reliable, independent data about passenger numbers, including the types of people using the service must be addressed.
“The Committee also believes that, if the service is to continue with public funding support, a strong marketing campaign should be part of any contract awarded.”
The Committee has made a number of recommendations in its report including:
The Committee recommends that the Welsh Government use an independent source to verify data on passenger numbers using the Air Service and that data on passenger numbers be published on a regular basis in the future;
The Committee recommends that the Welsh Government include an explicit requirement in any future tender, for a comprehensive marketing programme to be undertaken by the successful bidder; and
The Committee recommends that information on passengers using the Air Service be collected to determine the sectors in which passengers are employed and to what extent journeys are funded by the taxpayer. Such information should be published and collected on a regular basis.
Information about the Intra-Wales - Cardiff to Anglesey - Air Service can be found here.