Air Labrador ’s announcement that they will be discontinuing their dash 8 air service is a concern that must be monitored by government to ensure air access to all regions of the province remains available and affordable, says Opposition Leader Yvonne Jones.

“While I am disappointed that air service will be reduced and a number of employees will be displaced, I want to thank Air Labrador for their service over the years,” said Ms. Jones. “I am pleased to see that the company will not be going out of business, but instead will be refocusing their efforts. They have outlined their commitment to operations on the south coast of Labrador for the short-term and I can only hope they will continue flying to coastal communities who rely on this service.”

Jones says she met with Air Labrador officials last week who briefed her on the details of the downsizing. Officials told her that the company was losing money, capacity was down and they could no longer remain competitive.

“While I understand why Air Labrador was forced to make these business decisions, I have concerns what this will mean to competition within the province’s airline industry. Eliminating competition is never good for the consumer and this will have to be monitored by government, however, Provincial Airlines has operated monopolies on air service to Stephenville, St. Anthony, Churchill Falls and Blanc Sablon and have given excellent access and fair pricing. I’m sure they will continue in this same vain.  Provincial Airlines has already stated that they will increase capacity to fill the void, while keeping prices down. They have proven to be a good corporate citizen and I am confident they will keep this commitment.

“While decreased competition is one concern, there also needs to be recognition of what future restructuring could mean for coastal air travel. There are currently no other airlines that fly to the south coast of Labrador, which can only accommodate a twin otter aircraft service. I want to ensure that this service can be protected. We have asked government to put a larger regional airport in southern Labrador in Port Hope Simpson to allow for future air access into the region, but to date they have not committed to the infrastructure. Government needs to evaluate what further action is required to protect this vital service for the long-term benefit of the region.