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Budget 2020: Policy & Resources Committee calls for new air links framework

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Tuesday 08 October 2019

The 2020 Budget addresses a number of important financial issues, but the finances of Aurigny are of particular note.

It has already been stated that the airline's losses for 2019 are now forecast to exceed £7m. It is also anticipated that Aurigny will see losses of £9.6m in 2020 if it continues operating the Alderney routes unsubsidised. The scale of these losses, which are a direct cost to the States of Guernsey are extremely concerning.

To date the States as a whole has not been sufficiently joined-up when it comes to air links. Therefore, the Policy & Resources Committee is requesting that the States endorses its intention, in consultation with the Committee for Economic Development and the States' Trading Supervisory Board, to develop a coordinated and coherent government framework that considers all aspects of air route operation and support that is under the control or influence of the States of Guernsey.

Deputy Gavin St Pier, President of the Policy & Resources Committee, said:

"We are beginning to see the financial consequences of a disjointed approach to air links. The Island has benefitted in some ways with more destinations to fly from, including a daily Heathrow service. But a lack of coordination has arguably resulted, at least in part, to significant losses for Aurigny which the taxpayer has to cover. This is not sustainable and we need to bring together all areas of government with responsibility for various aspects of our air links strategy so we are working as one."

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2020 Budget Report 2020 - Budget on a Page

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