AURIGNY has accused rival carrier Blue Islands of expanding its business at the expense of shareholders. Based on Guernsey Airport figures for 2007, both airlines have claimed to be the major inter-island operator.
Aurigny said its overall market share was still more than 60%, while Blue Islands said it had experienced 79% growth and achieved more than 50% market share between Guernsey and Jersey in the last year.
Aurigny commercial director Malcolm Coupar said he was not in the business of fighting for market share at sub-economic fares.
‘We acknowledge that Blue Islands have grown their share of the inter-island markets, but they have done so at a great cost to their shareholders,’ he said.
‘Derek Coates did not become successful by running unprofitable businesses in the long term. Therefore, one can assume there will be a point when he has to start making profits. This will come from any combination of reduced competition, reduced costs or increased fares.
‘Buying market share at great expense is not difficult but recovering investment and generating profit are challenging and Blue Islands has yet to make that hugely difficult step.’
A Blue Islands spokesman said the company would not be drawn into an argument with Aurigny.
Chief executive Mr Coates said the airline had come a long way in the two years since its launch. ‘We will be aiming to reach a 70% share by the end of the year,’ he said.
Blue Islands managing director Paul Sabin paid tribute to staff members’ attention to customer service.














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