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"No quick fixes"

Wednesday 02 October 2019

"No quick fixes"

Wednesday 02 October 2019


A fresh attempt will be made to see if any new operators want to fly between Guernsey and Alderney.

The Committee for Economic Development is working on a second attempt to get a new contract in place to run the service, after the previous attempt failed.

The news came in a response from Guernsey's Policy & Resources Committee to a letter from Alderney's Policy and Finance Chairman over the island's air links.

Alderney States Member James Dent said there has been a huge deterioration in the island's air links in recent weeks. 

James Dent Alderney

Pictured: Alderney Airport and James Dent. 

P&R has acknowledged some of the disruption and said it is looking at various aspects of the service including holding a review of Aurigny and looking at another PSO.

"Aurigny and its staff provide a vital service to our communities," P&R said in its response letter. "But of course the Policy & Resources Committee is cognisant of the impact any disruption of Alderney’s air links has on the community. It has been the subject of a number of statements in the States’ Assembly this year alone and urgent questions at this week’s States’ meeting to Deputy Peter Ferbrache as the President of the States’ Trading Supervisory Board, Aurigny’s shareholder.

"It was announced in February that the Scrutiny Management Committee, had commissioned jointly with the STSB an efficiency review of Aurigny. This review will produce an initial diagnostic assessment of the operational and financial efficiency of the airline. This will include a review of Aurigny's budgets, management accounts and other management information to develop a better understanding of the airline's performance and how improvements can be made to address the concerns of Alderney residents."

Aurigny's losses for 2019 are going to be a lot higher than previously forecast - having increased from an estimated -£4.4million to -£7.6m.  

Screenshot_2019-10-01_at_16.25.59.png

Pictured: Deputy Charles Parkinson is President of the Economic Development Committee, which will be working on a second attempt at a public service obligation for Alderney's air links. 

P&R's response went on to say:

"As stated in the P&R update to the Assembly in September, the unexpected increase in financial losses declared by Aurigny this year are clearly a troubling development, as these are borne by the taxpayer. And this is unsustainable. P&R are advised by the STSB that numerous factors appear to be driving the deterioration. Most notable, apparently, is the impact of increased competition since the introduction of the quasi ‘open skies’ policy last year.

"The Committee for Economic Development are working on a second attempt at a public service obligation (PSO) process in respect of a contract for Alderney’s air links.  It is hoped that this process will conclude shortly.

"P&R will be giving consideration to appropriate propositions to put to the States as part of the Budget Report to refresh the Strategic Review of Aurigny which took place in the early part of this States, in light of Aurigny’s deteriorating financial position and the changed marketplace.

"P&R will work together with the STSB and the Committee for Economic Development (which is responsible for air links policy) so that the States can, as soon as possible, be allowed to make informed choices to address the concerns raised."

However, P&R ended with a warning to Alderney, and anyone hoping for a resolution to any air links woes soon:

"There are and will be no quick fixes."

 

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