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Aurigny expected to continue to lose money

Aurigny expected to continue to lose money

Thursday 11 October 2018

Aurigny expected to continue to lose money

Guernsey's States owned airline is set to lose another £4.4m. in 2019, a slight rise on the £3.7m. forecast loss for this year.

But those losses are being curbed to a degree, after peaking in 2017.

If predictions are correct, the continued increasing deficit will push Aurigny beyond a total of £16m. in losses, and will see plans for a third recapitalisation coming to the forefront. 

This is all just months after the airline said it was looking at acquiring a new fleet of "fog busting" ATRs.

One of the main expenses for Aurigny is running its multiple routes to and from Alderney. In 2017, for example, the total net cost of the airline was £6.8m., and the operating loss on Alderney routes was £3.3m. Next year, £3m. of their forecast losses are again linked to the island. 

But that is now looking to be addressed, as earlier in the year the States went to tender for public operators to run some of those routes and take the pressure off of Aurigny. As part of that, this is also the first budget released to already account for Aurigny's losses.

In the short term, Policy & Resources have once again asked for a temporary overdraft facility to be issued to Aurigny, a move it has previously made as well, to cover the losses. This means the States will be the guarantor for any more losses the airline may incur and will cover its cash requirements. 

That overdraft facility will be to a maximum of another £15m. 

Pictured: An Aurigny Dornier, which serves Alderney.

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Posted by David Lee on
If they believe it is going to continue to bleed money, they should impair their investment in the accounts. Basic accounting!
Posted by C J A Bennett on
ANYONE/ANY COMPANY can claim ANY figures if they NEVER produce FISCAL EVIDENCE for them!!! Aurigny/States of Guernsey have been claiming and blaming Alderney route 'losses' for some years with NO EVIDENCE of just WHERE these 'losses' have allegedly occurred! Stalin once said 'tell a big enough lie often enough and all the people will believe it' . . . . . . .
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