Anger mounts as helicopter service set to be mothballed

“Tesco were scared of the competition that Sainsbury's would bring. Tesco Penzance needs a kick up the pants to improve their performance, as they are too complacent, with little competition.
Whatever one thinks of the decision to allow Sainsbury's to buy the site (a big mistake), Tesco are running scared, and so started a judicial challenge that will cost the Council big money.
This forced the Helicopter company to chuck in the towel.
Of course, this might have been their plan anyway!

Andrew George is trying to get the same Subsidies as the Scottish Islands get, and the Tory Govenment should bear in mind that the two local MPs are in marginal constituencies, which could swing to the Tories. So it would make political sense to announce money for a year round ferry boat!”

“@rcliffe
"The solution for the Island community is the same as for all the other island communities in the UK "

I've raised this a few occasions now against these articles and forgive me if I plead ignorance, but excluding tourism out of the picture what about an essential link to RCHT run sites?

Not all RCHT sites offer the same clinics, and St Marys hospital takes visiting consultants.

West Cornwall is easy access and St Michaels is just a little further.

So... will Cornwall Council, NHS, and other services step up to the mark to ensure adequate healthcare provision and a fluid method of access? The problem needs to be sorted sooner rather than later.

Those needing hopsital treatment/further appointments are going to find things thrown up in the air so to speak if they can't plan ahead. The skybus isn't for everyone.”

“There has been concern for several years about the sustainability of the BIH service. It has suffered a long term downward trend in passenger numbers and has much higher costs than it scompetitor Skybus. It could not raise fares higher than they currently are (£190 return) without scaring off even more passengers. Meanwhile Skybus has been growing its share of air passengers in/out of St Marys and states it carries more than 50% of the traffic.

BIH has had to borrow money to make up for losses. In 2009 it ran out of money to continue to operate and to repay loans falling due. Total indebtedness is about £14 million. The solution (get out of jail card) was the sale of the heliport that fortunately was in the middle of a business/retail park. Rumour has it that the agreed price was in the region of £10 million. With the sale reducing indebtedness substantially the company would not be saddled every year with interest and similar payments of £1.7 million.

The move to Newquay could only be a temporary solution because it is too distant from the Scillies to be a long term base. It was known that there were detailed discussions with local landowners about a new heliport location nearby. I am not sat all sure that plans for a new heliport locally would have gone ahead. What the legal actions did was guarantee that no other options were pursued (due to lack of money).

BIH is now in a very difficult financial position. The 2010 accounts show £11 million due for repayment between 2012 and 2015. BIH is entirely at the mercy of its lenders who have their debts secured on the heliport and other BIH assets – this is not a position any company wants to be in. The lenders can roll over loans based upon the prospect of the deal going through a bit later than planned but if they think the deal is off then they can go to court and seek possession of BIH assets when existing agreements fall due and cannot be honoured.

No helicopter operator will be interested in a service to St Mary's given the competitive advantage of Skybus. BIH lenders would object to any usage of the site that might obstruct the sale to Sainsbury's.

The solution for the Island community is the same as for all the other island communities in the UK – an all year around ferry service with Govt help. The current subsidies for the Scottish Islands is not something created by the new devolved Scottish Govt – it was created and sustained by Westminster many decades until inherited by the current Scottish Govt.

The only help Islanders got was with the capital cost of the current vessel in 1977. Some 60% (£1 million) was provided in the form of an interest free loan repayable over 10 (or perhaps 12) years. The Board of the IOSSCo had a director appointed by the DfT whilst the loan was being repaid (which it was). The Govt decided in 2011 not to provide financial help for a replacement vessel so we have a problem not just with the loss of the BIH service but also replacing the Scillonian III – hence the proposal to extend its life to 41 years. IOS transport is going to remain in the news for years and years.

The DfT decision in 2011 effectively airbrushed out the Islanders reasonable requirement for a a reliable all year around link to the mainland. The BIH news just shines a spot light on the issue. We need some high level political leadership on this issue).”

“I am an ex St Juster, and am very dismayed at the news of the Heliport closing. I knew that the site was sold for yet another Supermarket out of town. There are so many shops in the town already closed. The tourists have little to do at the present in Penzance,I cant see them spending hours in the supermarkets.
It is about time that the people of Penzance relalise that the town is very unattractive for visitors, let alone the people around the district. My last visit 'home' was very distressing.
The Harbour still has'nt been improved. What happens when the Day trips to Scilly Isles are no longer viable ?
Tren Harvey, Melbourne Australia.”

“It's Tesco's fault ? Rubbish ! Firstly it's not them buying the site and secondly British International had no intension of running service regardless. Where were the new helicopters coming from ?”

“I don't know, it's on the same basis Hannah, they're both both Islands seperated from a mainland with considerable populations. Whether or not the scottish goverment is disolved what they are asking for is the same support that has been provided, which to be honest is fair.

The islands rely on water and air transport for food, supplies and basis transport. My biggest concern is the imapct on health has the hospital on St. Mary's does not have round the clock cover for all speciailites and patients need to make the journey across to the mainland. West Cornwall is a tradional favourite but with the alternatives being Lands End or Newquay on the Skybus it's adding considerable distance and cost to a patients ability to make it across for appointments.

Culdrose can offer emergancy airlifts but that's not cheap either...”

“Is comparing the Scillies to the Scottish islands a bit simplistic though? Whatever the rights and wrongs of the situation, are the links to the Scottish islands the responsibility of the devolved Scottish government?

I could be wrong - I'm just asking the question.”