Opinion

Loss of United Airlines route is a blow to Stormont executive

The decision by United Airlines to end its transatlantic route from Belfast International Airport is a significant blow to the Stormont executive and will have implications for the wider Northern Ireland economy.

There is no doubt there have been difficulties in maintaining the daily flight to and from Newark, New Jersey, which was launched in 2005 and which has carried one million passengers.

United suspended the service for several months last year while only weeks ago economy minister Simon Hamilton produced a £9 million rescue package in a bid to save the route.

Concerns were expressed at the time about this substantial support package for a commercial organisation and Mr Hamilton admits there was a potential issue over state aid compliance but said it was not possible to get European Commission approval in advance.

However, following a complaint that the package breached EU rules on unfair state aid, the commission has now blocked the deal.

Clearly, this has come as a bitter blow to the airport and the executive with the minister hitting out at `unelected Brussels bureaucrats' for the loss of the north's only direct US air link.

Given European rules on this type of funding it is perhaps no surprise that the payments to United Airlines fell foul of the commission.

Aldergrove certainly offered convenience for US travellers heading to meetings in Belfast but faced stiff competition from Dublin which is able to provide a wide range of well-established routes to north America.

Improved road links make Dublin airport reasonably accessible for many people and this is where the majority of passengers from the north will head when United Airlines ends its flights.

It has to be acknowledged that airlines are businesses and will make decisions based on commercial factors.

Stormont will look at the bigger picture, recognising the importance of being able to point to a direct transatlantic link when wooing overseas investors.

It was part of an image being presented of a forward-looking, growing economy with a highly skilled workforce able to do business with firms from across the globe.

In prestige terms alone, the loss of the air link will be keenly felt.

Now that United has decided to pull out, the difficulty for Stormont and Belfast International Airport is attracting another airline prepared to offer a direct link to the United States.

Based on the United experience, the signs are not favourable but we must continue to promote Northern Ireland as a good place to do business.