Clarity demanded from government on airline's purpose

The chief executive officer of Aurigny hopes for clarity on what the airline's purpose should be in the future.

Nico Bezuidenhout held briefings this week for Guernsey deputies, following projections of a £9.7m loss in 2026 with a further £5.7m loss next year.

Bezuidenhout said it has been difficult to balance keeping airfares down and increasing reliability alongside record high fuel prices and competition.

The Committee for Economic Development has been approached for comment.

The airline's mandate from the government is to break-even, which Bezuidenhout said they were "striving towards" but that there was a "cost to bear" when it comes to reliable air travel.

"Whether that cost must be borne by the states or by the paying public is an open debate and an open question

"It becomes a matter of clarity of purpose going forward" he added.

The Air Policy Framework, which defines the strategic roles and responsibilities or the airline will be presented and debated by the States early next year.

Bezuidenhout said that a "competitive, subsidised environment" in the new Heathrow route "adds an additional burden and imbalance to that equation."

Despite Aurigny receiving bailouts from the government when it made losses, the CEO said:

"I'd way rather prefer to have an upfront subsidy that I can pass through into the hands of the residents of Guernsey than to receive an after-the-fact compensation for losses suffered".

Other cost saving possibilities mentioned by Bezuidenhout included reframing airport costs and airport charges:

"We've seen that that's been used where carriers might have been subsidised through airport fees".

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