Increased air fares to and from the Isle of Man are inevitable, the Transport Minister has admitted.

David Anderson told Tynwald a number of cheaper fares, introduced on a competitive basis by airlines, were not sustainable and, following the collapse of EuroManx, passengers would have to pay more.

Mr Anderson also revealed there were no plans to run a semi-national airline, stressing such a venture would struggle to be profitable.

He added some airlines, partially owned by and receiving subsidies from government, faced accusations over whether there was a level playing field which, he said, would put off some carriers.

Mr Anderson also mentioned increased fuel costs, and said ten airlines in Europe had gone into liquidation in the past month.