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Board reaches final decision on British International
26
Oct
2010
The Isles of Scilly Steamship Company can confirm that it has concluded its discussions with British International Helicopters about a move to Land�s End Airport from its current base in Penzance.
The Company, which operates lifeline passenger and freight services to the Isles of Scilly by air and sea, has made the announcement to its shareholders today (Tuesday 26 October).
Andrew May, Chairman of the Isles of Scilly Steamship Company, said: �After much consideration of British International�s request to move to Land�s End Airport, following its decision to sell Penzance Heliport, a final decision has been reached by our Board.
�Following the original discussions with British International about a move to Land�s End two years ago, the environment and economic landscape in which our Company is operating is fundamentally different now. We carefully considered all the risks and uncertainties facing the Company in the current economic climate - the additional commercial, environmental and reputation risks to our business, should we have agreed to British International�s proposals, are not acceptable.
�For a variety of reasons, including the need to fund the very considerable investment that, as preferred bidder, will be required if the Isles of Scilly Link project leads to the successful introduction of a new ship to replace both the Gry Maritha and the Scillonian III, we have decided not to continue negotiations with British International.
�Uncertainties about the outcome of Cornwall Council�s bid to the Department for Transport funding required by the Link Project and should the introduction of a new vessel be delayed beyond April 2013 for any reason, we believe that significant investment may be required in our existing vessels so they can continue to service the route.
�Whilst it has been decided to continue with enhancing passenger facilities at Land�s End, we would not wish to embark on a further significant programme of capital expenditure which would be required for helicopters to operate a regular scheduled service from the airport � the return from which would be uncertain for our shareholders,� he said.
The Isles of Scilly Steamship Company has been serving route to the islands for 90 years and has close to 1,000 shareholders, around half of whom live in the Scillies.
Mr May added, �By making our position clear at this early stage, it gives the best opportunity for all interested parties to formulate alternative plans. The provision of a sustainable lifeline service remains at the core of our business. We are fully committed to all islanders and the combined, robust air and sea services that our Company provides will continue to have the long-term interests of the community, our shareholders and businesses at heart.�
Ends
26, October 2010
**Interviews with Chairman Andrew May are available on request**
Contact:
Ryan Martinez
Deborah Clark Associates on behalf of Isles of Scilly Steamship Co.
01208 77900 / 07887 746569
[email protected]_of_the_skype_highlighting
Notes to Editors (Isles of Scilly Steamship Co):
Isles of Scilly Steamship Company Ltd was formed on 26 March 1920 and the first Scillonian Ship began regular trips to the Isles of Scilly on Thursday 2 February 1926. Since then the Company has continually operated the shipping service which is a life line for the Isles of Scilly.
This year will be Scillonian III�s 33rd year of service. The ship was commissioned and built for the Isles of Scilly Steamship Company by Appledore Shipbuilders Ltd in Devon with work starting in 1973. She sailed her maiden voyage on 19th May 1977 and since then has become a signature sight of the Islands and a preferred method.
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