Aurigny told 'No' to subsidy on Heathrow route

Friday 22 February 2019

Aurigny was offered a chance to run a route to Heathrow toward the end of last year, but was told by the States it wouldn't be given any subsidy, meaning it had to pass up on the opportunity.

Now though, it has been announced that Flybe - an Aurigny competitor - is being given government subsidy to fly that same route by the government.

The States-owned airline was left in the dark over a service that will "have a detrimental financial impact" on it, as the news only got to Aurigny HQ yesterday when it was announced to the public. It said it was still making a detailed assessment of the situation, but hit out at the fact it provides year-round services, while this will only be short-term. 

"It is most likely that the majority of customers using this summer service would have otherwise used Gatwick and will therefore lead to a loss of passengers and revenue on our Gatwick route," a spokesperson for the airline said.

"We also note that Flybe is being subsidised approximately £20 a passenger leg to provide this temporary route. Aurigny receives no subsidy for its Gatwick route and uses the surplus generated on that route to cover the losses on its other routes connecting to our other airports in the UK."

Aurigny said it wanted to fly to Heathrow at the end of last year but was told it couldn't have a subsidy from the States - the airline is already losing millions of pounds a year however. 

Flybe will operate daily flights between Guernsey and Heathrow airport from 31 March - giving the island a direct connection to Heathrow for the first time in over 20 years. The subsidy will see Economic Development investing £678,000 in to Flybe, and also providing it with a £147,000 discount to land at the airport.

Deputy Charles Parkinson, President of Economic Development, said this new Heathrow service will not only provide much improved connectivity for Guernsey’s residents and its visitors, but it will also help in the development of the Guernsey economy and in raising Guernsey’s international reputation and profile.

Why this subsidy was not available to Aurigny is not yet known, but its spokesperson added: "In November 2017 Aurigny had the opportunity to operate a daily London Heathrow service on much the same basis as is now being offered by Flybe. We approached the Committee for Economic Development, but as no financial support was forthcoming, we had to forego the opportunity.

"The rival service will have a detrimental financial impact on Aurigny’s remit to ‘breakeven’ which Aurigny is reviewing with its shareholder, STSB. Given P & R’s and Economic Development’s recently provided support for the importance of Aurigny’s network coverage, we intend to continue to provide the Island with the existing connectivity year round for years to come, not just this summer." 

Currently Aurigny operate six daily services to London Gatwick, which the States designated as a lifeline route when it announced the ‘open skies’ policy. It did acknowledge the new route would be helpful in improving the island's connectivity.