Sunday 22 December 2024
Select a region
News

Profitability is third on the priority list

Profitability is third on the priority list

Thursday 03 October 2024

Profitability is third on the priority list

Thursday 03 October 2024


Aurigny's boss was given three tasks when he joined the airline in 2020 - and making money was only third on that list.

The airline's owner - the States of Guernsey - appointed Nico Bezuidenhout in 2020.

The number one priority he was told at that time, is to maintain connectivity on the lifeline routes serving Alderney and Guernsey residents, while also supporting the economy through its wider network. 

The second and third priorities are financial: reduce the losses Aurigny was making, and reinvest any profit that is made back into passenger benefits such as reduced fares, or new services. 

Mr Bezuidenhout has acknowledged that Aurigny has failed to meet its first priority this year - with repeated delays and cancellations affecting thousands of passengers during the first half of the year.

In meeting its second and third priorities, Mr Bezuidenhout said Aurigny had been successful in recent years, before 2024's troubles. 

Nico Bezuidenhout Aurigny

Pictured: Nico Bezuidenhout has been CEO of Aurigny since 2020.

Having recorded millions of pounds worth of losses since the States of Guernsey bought it, to secure the island's Gatwick landing slots, in 2003, the airline was making money before February 2024 arrived with technical issues affecting numerous aircraft and the foggiest weather on record for the month.

The States of Guernsey's 2022 accounts showed that the airline had made a £6m profit.

2023 saw £1.5m profit recorded.

We'll find out next Spring what Aurigny's final accounts are for 2024.

"I'm disappointed in the fact that we missed celebrating the successes we achieved last year," said Mr Bezuidenhout. 

"Last year was by far the best year on record for us and it gets forgotten, and we never even got to celebrating it, because before we knew it, February was on us, and misery started.

"As far as next year is concerned, I am looking forward to next year. A lot of the pain has gone through the system this year. In the end, when you complicate your fleet like we did with the Embraer (Jet), there's a price to pay to unscramble that egg."

aurigny_embrarer_jet_gatwick.JPEG 

Pictured: Aurigny's former Embraer Jet at Gatwick.

Aurigny's efforts to "unscramble that egg" saw the jet leave local service earlier this year. 

That won't help the airline make any money this year - but Mr Bezuidenhout thinks a simplified fleet will help the airline reduces its losses, and report further profits, in the future. 

"Back in 2020/21 when we put forward a business strategy to the States, it was clear that if we're going to keep the Embraer (Jet), that we're going to have to spend £10m fixing it. We decided to not keep it, but we ended up having to spend money on it anyway. So this year is not financially very successful. It's not successful at all financially because our commitment is to the island.

"We've spent every penny we needed to spend to try and recover services. But looking forward, as far as next year is concerned, we've proven that the business can be profitable.

"We've done the fleet change, we've done the network changes, so I do look forward to a good next year."

When Mr Bezuidenhout predicts a "good year" he still doesn't mean Aurigny will make money though - as that remains third on his priority list.

"Our objective is always break even. Last year we made a million pound profit. I didn't mean to make a million pound profit, it's difficult to exactly break even. Our objective ultimately is 'don't make money, don't lose money', then pass that back in lower affairs and greater connectivity. That's the objective."

READ MORE...

EXCLUSIVE: Some routes to be dropped

EXCLUSIVE: How unexpected events, and a failed back up plan, left Aurigny struggling with 75% fewer planes

EXCLUSIVE: Aurigny's boss on regaining your trust

OPINION: He is the right man for the job

Sign up to newsletter

 

Comments

Comments on this story express the views of the commentator only, not Bailiwick Publishing. We are unable to guarantee the accuracy of any of those comments.

You have landed on the Bailiwick Express website, however it appears you are based in . Would you like to stay on the site, or visit the site?