BLUE ISLANDS has struck a deal in principle to buy Aurigny.
In a join statement released early today, Treasury and Resources and Blue Islands confirmed they have reached a preliminary agreement that would see taxpayers relieved of the burden of propping up the loss-making States-owned airline.
However, minister Charles Parkinson confirmed that the States would have to clear up to £6.4m. in loans Aurigny has accrued before the deal could go through.
He added that the States would be likely to retain ownership of the airline’s two new ATR aircraft and lease them to Blue Islands. The States agreed for Treasury to act as guarantor for the loan to buy the planes, which cost about £9.3m. each last year.
Both Treasury and Blue Islands will now enter a two-month period during which they carry out due diligence.
- Read the full story in the Guernsey Press. See below for subscription details.
Article posted on 15th July, 2010 - 2.30pm
74 Article Comments
KEEP THE TRISLANDERS!!!! WE WANT THE TRISLANDERS!!!!!!
It’ll be a sad day when the Trislanders finally fly their last flight :-(
As for the take over, I hope that the prices don’t go even higher should this takeover happen, as we will technially be one company down.
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If the States sell the airline, does that mean that Blue Islands have the desisions on where ‘Guernseyland people’ can fly to?? The thought of them hiking the price of the London flights right up or cancelling them altogether is a worry!
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Correct Jon. KEEP THE TRISLANDERS UNDER THE CONTROL OF THE ISLANDERS !!
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Whatever happens please do not leave us with only Flybe as our operator. They might be a low cost airline when flying on competitive routes but they know how to scalp you when they have a monopoly…ask anyone who has to use their Birmingham flight! It’s cheaper to fly to East midlands with Aurigny, hire a car and pay for the extra petrol!
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I am personally in favour of keeping Aurigny under States ownership even if it means a slightly higher tax rate.
All we need to do is weed out inefectual management. It’s not rocket science. If Derek Coates can do it, why can’t Malcom Hart?
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Possible sale of Aurigny
Quote from press release
Treasury & Resources Minister, Deputy Charles Parkinson said: “in our view it is not the
job of government to own an airline particularly where a private sector option exists.
Government should simply be there to ensure that transport policies have the island’s
interests at heart. These include the protection of our lifeline routes”. End Quote
My view is, that in the past our government has been singularly unable to “ensure that transport policies have the island’s interests at heart”. In fact the opposite is true, as we have received numerous assurances in the past from a number of airlines that they were committed to Guernsey, only to see them disappear over the horizon a short time later. So it is not in our power to give any assurances on policy when that policy is dependant on privately owned companies.
The only way that Guernsey can have any guarantee over its air links, is by keeping control of some of them ourselves. It is the security that our people need. In the same manner in an ever increasing hostile world, we have had to make our own provision for the security of our fuel deliveries.
It is true our airline does make a loss and we subsidise it to keep it afloat but we also subsidise the buses which in the scheme of things we might be able to live without. We can’t, I would suggest, live without our air links. This merger will create an unwelcome monopoly on inter-island routes, which I don’t think will help one jot with the price of fares, as they will inevitably rise when people have no other option. Making it one of the most expensive pieces of water to cross in the world.
We should also not loose sight of the fact that Aurigny is a local company which is dearly loved by the Guernsey people and we should not destroy this company, solely on the alter of the bottom line of a balance sheet. Please don’t turn this into another Guernsey Telecom.
My other concern is Anglo Normandy Engineering, What happens to that company and the highly skilled aero engineers who work for it?
Finally if the Airline needs new management then fine and while I have no issues with Mr Coates or Blue Islands I will oppose this acquisition purely on the grounds of Air link security for our people. We have full control now and we should keep full control because of the lessons and false promises we have had in the past.
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Donkey girl/Expat80 – Blue Islands and Healthspan are a Guernsey company with local employees in all the Islands that use the services as much as you do and its interests are in serving Guernsey and its Hotels more than say if Flybe where to purchase it! All us Islanders should be please to be served by as many airlines and routes we have for our size yet we still moan when people try to make improvements!
Still we could say no to Blue Islands taking control and let Aurigny fail and take all our tax payers money with it and Flybe can have a monopoly with all flights via Jersey?!
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Easy now my ‘ickle brayeing donkey friends. Take caution that we are not putting sentimentality over profitability?
If so every Guernsey tax payer will have to continue to prop up Aurigny the ailing airline. Last year we bailed them out to the tune of £4m+ allegedly.
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“Don’t look a gift horse in the mouth” This is a bloke that cares with a passion about our Island and quite frankly I don’t think he needs to invest anymore of his cash but I think he just enjoys the ride, in so doing if he can help the Island and at least improve a pretty badly run airline, then all well and good. If you feel Flybe can do a better job, look how quickly then can axe routes without any consideration to the locals, they ain’t Guernsey based remember their old name “Jersey European”. Also the Trilanders are pretty much past their sell by date and are outrageously expensive to operate, give me two pilots any day !!
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Will Alderney still get direct flights to UK or will we all have to fly via Guernsey? Nightmare for parents with children flying to school unaccompanied on the mainland as they won’t let you do it.
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Something not right with continuity here – we were told that the States needed to own an airline to ensure retention of its essential slots at Gatwick. So what has changed, that now enables the States NOT to have to own an airline to preserve it’s essential slots? What’s to stop Blue Islands selling the slots off and making a tidy profit? 180 degree turns require explanations!
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@Donkey girl, on average I find Blueislands matches or beats Aurigny and Flybe on price.
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Selling control of our own airline raises very worrying questions:- Route Closures, Ticket costs,
Gatwick slots, and more.
What good is a Golden Share protecting the slots? If Blue Islands goes out of business, losing it’s airline certificate, Guernsey can’t own them and won’t have an airline to transfer them to.
The worst scenario will be a sell out to Flybe. Imagine them with route monopolies to Gatwick and Manchester. We’ll be held to ransom!
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It is a bad idea to sell Aurigny and an even worse one to sell to the only other inter island operator on the island for many reasons, one being fares WILL rise. Instead of selling up the states need to run the airline themselves give Aurigny the chance it deserves.
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I dont like the sounds of this – from an Alderney perspective we already have too little choice of places to fly from, currently only Guernsey or Southampton.
If this deal goes ahead, I can see our choices being limited to just being able to fly to Guernsey and then having to fly onto wherever else from there – which is only going to add even more to the cost to being able to leave the island.
And then of course there is the tourism aspect – it is already hard enough to convince tourists to pay the high costs to come to Alderney, nake things even more expensive and complicated then those numbers are only going to dwindle further…
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You really think Aurigny jobs would be safe following the takeover – I think not especially those based in Alderney. Aurigny is a local company that has been operating as an airline for over 40 years – how long has Blue Islands been flying aircraft? Deputies please vote no to this as a monopoly on the inter island routes does not make sense.
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leave the the best island service under control of the islanders.I love the channel isles making our first visit to Alderney this year.We live in land locked Shropshire but love your islands how are we going to afford to visit if someone takes over and hikes up all the prices?
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Seems like a no brainer to me.
If CP was being accurate on the channel news tonight then:
1) The taxpayers offload the annual cost of subsidising the airline.
2) Taxpayers still receive an income from the leasing of the planes owned.
3) We still have 2 operators competing over the life line Gatwick route
4) We would probably have increased competition from Flybe on the inter-islands routes as this would need to be opened up (rather than capped at a % of seats)
5) If the amalgamted BI/Aurigney starts making a profit, the states gets a cut of the profit.
6) BI are much better at marketing (IMO) so perhaps an increase in tourism.
Flybe have made a lot of huff ‘n’ puff over the sale (not going to them) but in reality this would have removed any competition on the lifeline Gatwick route as they would be the sole operator…. we’d get reduced flights and probably increased prices.
Of all the possible options re Aurigny, this truely appears to be the best one for Guernsey.
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Going by what has happened in the aviation world in the last 60 years, you would be mad to sell off Aurigny. If you do I will bet you anything you like in say 5 to 10 years, you will have to bring back a state owned airline even if you call it by another name say Guernsey airways.
So he buys Aurigny and in the future he sells to Flybe to make a few bucks. Back to square one. Short term thinking not good.
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Message to states , if you sell it DON’T FORGET TO CLEAR OUT THE BANK ACCOUNT DUH. ( re,telecoms)
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The main reason Aurigny are not making money is because Flybe are forcing down the price of fares.They are doing this in order to try to put Aurigny out of business,so that they can then take over and put up fares without any real competition.
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This is a very risky “merger” for both parties.
Both airlines are running at a loss. Excluding the two ATR-72’s both fleets are old. Very old.
Aurigny has tried to compete with FlyBe on the Gatwick route and failed (financially).
Blue Islands has tried to niche its way into the market. And still makes a loss.
What will be the business model? Full fare, niche, half cocked (as Aurigny is now) or budget/low fare a la FlyBE?
Its a major decision as the current models of both airlines patently don’t work.
If they keep the status quo the venture will fail. If they go down the low fares route (in competition with FlyBe) they will fail. Is there a market for a full fare operator – don’t think so.
Without doubt BI will have to massively reduce costs to have any chance. So bye bye Anglo Normandy etc.
Personally I think the only way this will work is if there is major investment up front: reduce costs, rationalise the fleet (have one aircraft type, one maintenance base), decide on a business model.
Mr Coates is a good businessman and I wish him well. But I just have a nasty feeling that in three years time we’ll be owning an airline again – or bailing one out.
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I le Page – Its called competition. Aurigny can’t compete.
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We all own a little slice of Aurigny and I always fly with them out of choice. It helps secure our air links.
If we all made this choice and filled the empty seats there would be no need of subsidy would there?
So next you think you can save a fiver with on one of the others think again……..
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“Deputy Charles Parkinson said: “in our view it is not the job of government to own an airline particularly where a private sector option exists.”
Ok, no argument here.
It is clear the states don’t have a clue how to run a profitable airline. Rather than bringing in a management team with a history of running a profitable Airline the states instead decided to leave the failing Aurigny management with a history of running a loss making Airline in place.
However
“He added that the States would be likely to retain ownership of the airline’s two new ATR aircraft and lease them to Blue Islands.”
Are you saying that there are no private sector companies who lease Aircraft? What happens if blue islands find a cheaper option? The states will be left with second hand aircraft which they will probably have to sell at a loss.
Genius…
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Much has been said about the losses being made by Aurigny. How much is Blue Island currently loosing and would they survive without the support of Healthspan ? What would happen to the Gatwick slots if the new Blue Islands doesn’t succeed?
As I understand it Aurigny and Blue Islands only compete directly on the inter island routes.
CP mentioned that it is better to have a strong CI airline. Just remember that FlyBe used to be a CI company.
How many jobs will be lost across the Islands as a result of this takeover?
On balance I think it is better that the ownership of Aurigny stays as is.
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I can only see the sale to Blue Islands as a good thing.
They have a vested interest in the island and have proved this by the money theve poured into local hotels, departure longues etc.
The Flybe spokesman made me laugh when he said about the inter island services being a monopoly!
They have never been interested in inter island flights! Plus the fact that if Flybe did buy Aurigny then they would have the monopoly on all our London routes!!!!!!
Their solution would be to sell off some of those slots so they could finally fill thier planes, regardless of the noises that the States make.
We’ve been mugged by Flybe for too many years to give them any sympathy.
I bring people over for business about once a month. They fly on the same flight times in & out but i’ve never paid the same fare twice.
It can range from £110.00 to £200.00 so there is no rhyme or reason to what they charge.
Flybe’s crocodile tears don’t wash with me i’m afraid. Blue Islands is a more logical choice and will give a service that won’t let travellers down like Flybe do. How many letters do we see in the Press about Flybe every year? Yes, we see the rare one saying what a great service they recieved but the majority are not happy with the service they get
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Competition indeed Gilthead but Flybe are big enough to take a short term loss on some routes in order to make a long term gain…….
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I think that Sunrider raises some very real issues “we were told that the States needed to own an airline to ensure retention of its essential slots at Gatwick. So what has changed, that now enables the States NOT to have to own an airline to preserve it’s essential slots? What’s to stop Blue Islands selling the slots off and making a tidy profit? 180 degree turns require explanations!”
Good on Dave Jones for standing fIrm on this.
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It comes down to one simple point… do we want an airline committed to providing the islands with a service, or do we sell it to form an airline that has greater prospects of making a profit, but one that will undoubtedly cut frequencies and some of the more marginal roots. An island community fundamentally relies on its air links, any current losses by the Aurigny therefore are completely dwarfed by Aurigny’s contribution to the island economy.
As for those who have said the Blue Islands management team seem more competent; the press today reveals that BI made a similar loss to Aurigny last year, and this loss is on a MUCH smaller operation. To advocate that the BI management team are any more capable seems madness.
Futhermore, I think many islanders would agree it would be a great shame to lose such a loved airline, that is in essence deeply engrained into our history
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Aurigny disappears and we are left with Blue Islands who will now charge profitable fares rather than the cut price ones that have been in place in order to take passengers from Aurigny. This is yet another example of T&R knowing the cost of everything and yet the value of nothing. Aurigny is a decent airline providing an honest service to the public of Guernsey, remember them. Sadly, it will probably go ahead and we will never know the full story.
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Hello Hello. I agree and I think FlyBe having a monopoly would be a bad thing.
But my fear is that Blue Islands will not offer a finacially viable alternative.
What BI need to do (as alluded to in my earlier post) is to have a sensible business plan which will enable it to survive.
At the moment it does not. Or have the aircraft.
Why does it compete with FlyBe on the Southampton route? It must be making a loss.
Combine the losses of both Aurigny and BI and you have a bigger loss – even given the deep pockets of Healthspan this cannot go on forever.
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Is it me or is there little mention of Healthspan, the owner of Blue Islands. What are their plans for the airline? Does it fit into their business model to have a regional airline? We will see what happens to fares but to make a profit you need to cut costs and increase revenue, jobs and prices.
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Aurigny will never be able to compete with Flybe
as the states will not let it the most lucrative
route from Guernsey is the Southampton Route
which Aurigny is not allowed to operate on
Blue Islands does with there London Taxis
try flying to the isle of man in one Also
Trilanders Are Old But they have An Excellent safety record Deputy Parkinson Should untie
Aurignys Hands And Let Them Have A Chance i
Would Be Intrested To Know How Much The Gatwick
slots are worth And Do You really Think Flybe are going to operate all those slots to Guernsey i Dont Think So Bravo Dave Jones
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How can people claim Blue Islands is better run when it loses as much money as Aurigny on a much smaller business?
And which airline operates two types of aircraft (total 11), and which five (total 8)?
I know which I would reckon was better run….
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I think that the states should think long and hard before selling off Aurigny. I have travelled with many airlines all around the world and can honestly say that Aurigny are up there with the best of them. Their online booking system is excellent. Very transparent and with no hidden charges. Their ground staff and cabin staff are second to none. There is nothing better than boarding an Aurigny aeroplane in England or elsewhere and being offered a free cup of tea and the Guernsey Press.
I remember being in Grenoble a couple of years ago when an Aurigny plane landed. The amount of interest it caused with fellow travellers wondering where it had come from, and I also remember the pride we all felt telling them that the airline belonged to the people of Guernsey. What a wonderful advert and asset it was for Guernsey.
If Blue Islands were to acquire it, I think that changing the name would be a mistake. Blue Islands sounds like the title of a 1970’s Porno movie. Not the right image for Guernsey. I have nothing against Blue Islands and I do like their courtesy lounges, however I have on two occasions had my flights cancelled or delayed for what seems like no other reason than that there were not enough passengers to fill the aircraft. That has never happened to me with Aurigny, there have been occasions when I was the only passenger on the flight.
I seem to recall that I read recently that Mr Hart said that he expected Aurigny to be making a profit in a couple of years. If that is the case, why rush into selling it ?
I also wonder if there was ever another recession or disaster that impacted severely upon the airline industry, how long a successful business man would continue to run a loss making airline. Then what would happen to out lifeline routes ?
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Dave Jones, I have never really agreed with your views, particularly on housing. What is clear from your comments here though, is that this is a subject you have real desire to stop. I rate people with the courage and desire to speak up highly, and hope that having you on board, hopefully with the support of your so far scarily quiet colleagues, this whole ridiculous idea is stopped in its tracks.
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The States should take control of Aurigny and employ someone who knows how to run an airline and re-structure and update it. Aurigny is currently one of the worlds longest running regional airlines in the world and as a Guernsey citizen I am proud to be part ownwer of it.
Also the States would be making such a huge mistake with the sale of the airline with the way the current aviation industry climate is.
Aurigny is running at a loss but so are approx 90% of other airlines. It seems such a huge deal because being state run Aurigny’s figure MUST be published. I would intrigued to read Blue Islands.
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The UK routes are profitable for Aurigny, it is the inter island routes that are the life lines that are unprofitable and that is the fault of the States for licensing another airline on those routes creating the problem in the first place. There simply is not enough passenger traffic to make these routes profitable all the year round with two operators. We are just too small.
The same with our sea links, as much as we want real competition, there is not enough business for two operators all the year round on our sea routes either, perhaps in the summer months but that is no good to us we need year round services and we know the winter months can be very lean for all transport providers. We have to stop worrying about what other people think and do what is in OUR best interests, not what seems reasonable or what the business community believe we should do. Protecting our people is our number one priority and if that means we have to subsidise our own carrier to do that,then so be it.
This is not a car boot sale and it shouldn’t be treated like one. Guernsey is not all just about profits, it’s about people, our community, our transport security and dare I utter the sacred word loyalty. Loyalty to a LOCAL airline that has looked after Guernsey people for over 40 years. Not 40 months. There is nothing wrong with Aurigny that can’t be fixed and this incessant rush to destroy what is owned and operated by us simply because we are told that “governments shouldn’t own airlines” who said?
We are small enough to do pretty much what we want and that includes own and operate any of strategic assets if we choose too, in fact maintaining control over those assets is I believe vital to our overall well being as an island community.
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Mark thank you for your comments. As for Housing, they are not my views but the views of the housing board and the States as a whole.
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This is beginning to look like another Guernsey Telecoms “give away” job.
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The loss of Aurigny will indeed be a sad day for Guernsey. I have no issue with the name Blue Islands. It is rather pretty and very appropriate. However, Aurigny air crews, i.e. the pilots, are so much more competent at flying their aircraft than their Blue Islands or Flybe counterparts. What will happen to them? Will they lose their jobs?
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Business men come and go, as quite often do their fortunes……..
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OK, so I’m no expert in running airlines but I do use them. Or, to be more accurate, I use one – Aurigny. They are usually the cheapest against either of the alternatives and do not charge for various aspects, including baggage, in-flight drinks and, unlike Flybe, don’t charge you for paying for your flight!
Let’s be simplistic about this. The fares on the Guernsey-Gatwick route would be far higher if Aurigny were not on the route. At present they keep Flybe honest, which an airline such as Blue Islands, which seems to target the higher end of the market, is unlikely to do (note Southampton fares as an example). All I can see is that if Blue Islands take over Aurigny we will all end up paying more for flights to any destination with any carrier.
Let’s consider another aspect. We have a subsidised bus service and arguably we also have a subsidised airline. What are the benefits gained by the island from this subsidy? Probably to residents, businesses, tourism – in fact all who travel to/from the island. Even at £1.5m per year, based on a seat capacity of say 500,000 seats per year, the effective subsidy of £30 per flight maintains the attraction of Guernsey as a destination and keeps fares offered by other operators at a more reasonable level.
While I agree that there could probably be some improvements made to the business model and operational efficiencies, I would be very sad to see Aurigny disappear and even more sad to be paying higher fares – which I’m guessing may add £100 per sector for a family of four or five.
Please, please, think very carefully about this one!
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Before any more deputies make their minds up about Aurigny they need to get to understand the airline business. Jan von kettlesmasher’s idiotic suggestion of downsizing Aurigny to 2 routes is a kneejerk reaction from someone who quite frankly can have no idea what he is talking about. What do you do with the ATR when they have flown to Manchester and back early in the morning? Presumably his idea would be to put them in a hangar for the rest of the day and get then out again in the evening. Brilliant business sense. And as for long in the tooth Torode it is importsnt to discasrd any of his suggestions immediately,given the record of his previous pronouncements on so many subjects.
The key objective is not at any cost to let Flybe have a monopoly as they are a rapacious gang and Guernsey has been a highly profitable for them. They don’t like the fact that Aurigny has got stronger with its new planes and provides a better, more reliable and fuller service than them. Aurigny challenges Flybe as so many people abhor the additional charges added at each stage of the flybe booking process- so called ancilliary revenues so beloved of Mr (9%)Jim French (see his last statement Jan 2010 on flybe website). Low service, not low cost is the proper Flybe strapline and they will always leave you high and dry if it suits them.
So if the takeover does occur it will be quite possible to run a profitable airline group although I worry that Derek C will overcomplicate the timetables with dog leg flights that tend to run late. In fact given a fair wind and normal economic conditionms there is no reason why aurigny shouldntmake a profit on its own as its core routes do pretty well and East Midlands has been a great success for them. As I spend £25k per year on flights in and out of Guernsey believe me I have some experience.
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Every body commenting on Blue Islands comfy lounges, do you really think that when Aurigny is gone and BI has the early morning Gatwick and Manchester there is going to be free tea and biscuits etc for 150 people, I think not, it will be come a business lounge, and everyone else will back where they used to sit.
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How about if the government takes over BI and gets rid of the silly competition between 2 small airlines? BI is dumping prices on the Guernsey-Jersey link just to hurt Aurigny, but not because it makes sense business wise. Aurigny needs to follow and lowers the prices as well – again not because it makes sense, but because BI wants to hurt Aurigny. If there’s no BI ops, then prices will go up to a reasonable level giving Aurigny some much needed revenue to cover their losses.
That way we can guarantee the survival of Aurigny and all the much needed inter islands traffic.
I’m sure buying BI is cheap, coz the aircrafts are old and besides that there’s not much asset and substance in their business.
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I agree with all that Dave Jones has said and I hope that there are many other States voices to back up the ‘No’ support to this idea.
Aurigny should not be sold off.
It is not always about the balance books, and not on something as vital as the local airline and flight slots.
I also agree that running two operators on the same links, be they air or sea, is daft. Support the local company and run one operator and make it work.
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We have been visiting Guernsey for 32 years now and don’t want to see Augringy airline sold off to Blue Island. We were sad when the old flying sheds were taken out of service, they had their own character. For the first time we flew with Aurigny this year and the service we had was beyond excellent. The booking was straight forward, the staff were extremely polite and helpful. They fly from London Gatwick (we would have to travel to southampton for Blue Island). We have usually flown with Flybe but they are not a patch on the excellent service and staff of Aurigny. Please keep the Aurigny airline as an Island owned one, if it goes to Blue Island what will happen to Joey and all the helpful staff?
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I smell the whiff of blood here. What do you do if your business is losing money ?
You either fold it, or ( if your pockets are deep enough) buy out the competitor that is causing your losses. All simple stuff.
If this proposed deal doesn’t come to fruition, it’s only a matter of time before we are be back to just Aurigny and Flybe, and Aurigny will pick up the numbers it requires to become a viable business.
I know our States members aren’t the sharpest tools in the box, but surely they can see what’s behind this approach. Everybody pray that they hang on in there and don’t sell yet another precious island asset. If they do, every single person in Guernsey that travels by air will in the future pay dearly for this easily avoided strategic error.
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I think Theo has hit the nail on the head. It is the competition on the Guernsey Jersey route that has hurt Aurigny and in providing that competition Blue Islands are hurting themselves.
Should the sale go ahead it will be very interesting to see if any new operator would be licensed on the Guernsey Jersey route. I think not.
The simple answer is for Blue Islands to pull out and let Aurigny get back to profit.
As a Guernseyman who makes about 90 return trips between the Islands each year I will as a preference always fly Aurigny. How many Deputies show the same level of support for our airline?
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Am I alone in thinking that a more practical proposal would be for Blue Islands and Aurigny merge into a more manageable single airline, and for the States of Guernsey to exchange its shareholding in Aurigny to a shareholding in the new merged airline, thereby protecting the islands’ interests ?
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i have to say that i normally fly with Flybe, ive never had a problem with them and on many occasions even with all the extras ive found them cheaper than Aurigny. Also i fly with Blus islands as i can fly direct to Switzerland. As a local ive been let down by Aurigny on more than one occasion so i dont agree with their slogan ‘the islanders airline’.
I agree we dont really need more than 1 airline to jersey, and obviously a mistake was made there. Why couldnt we have an airline that flies elsewhere ie europe, its a pain having to fly to london etc to get a flight further afield.
So i think its time for a change whether that means Blue Islands buy Aurigny or more is done to help out Aurigny. Personally as a tax payer and local i’m not happy with aurigny as an airline and happy to see someone new come in.
Everyone has their own personal views :-)
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I urge the States to vote NO to this takeover.
As an Alderney resident, I feel that this would be the final nail in the coffin for Alderney. We are on our knees here with high unemployment and the takeover will only increase the unemployment figures.
Remember Blue Islands Reservation and Healthspan were first based here in Alderney only to be moved to Jersey. The same will happen again, all the reservations staff and operations staff will be made redundant and what about the ground staff and pilots.
BI stopped the Jersey, Bournemouth and Shoreham routes from Alderney.
There is no doubt that we WILL lose our only route to the mainland, we will be expected to fly via Guernsey.
What about Tourism here, at the moment most of the visitors flying with BI have taken advantage of the free flights offered to Braye Beach Hotel Guests, would priorty seats be given to the guests staying at the BBH and then all the other hotels. guest houses on the Island would suffer even further, most would be forced to close down.
I really urge States Members to think about the long term effects this would have not only for Alderney but also for Guernsey.
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I’ve just read these postings…have to say as a local i find many of my fellow islanders quiet deluded….I keep hearing that Aurigny are cheaper/there so skillfull/i love there free drinks/they dont charge for bags…they also lose £6 million pounds a year which you then subsidise out of your taxes the last figure i heard was a £160 per island taxpayer!! The Airline is losing money hand over fist and all i hear is rose tinted views of how wonderfull they are…where else in the buisness world would this be acceptable…We should count our selves lucky we have a strong capable award winning airline like Flybe serving us…especially when were on the brink of combining our two loss making airines together to create one super loser!!
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Gina – I concur with you in general and it’s good to read a different opinion. I would say in fairness though that on occasion I have found Aurigny cheaper than Flybe.
What I have never understood is the parochial blinkered vision that seems to appear whenever Aurigny and Flybe are mentioned. Flybe have their faults of course but so do Aurigny but I am constantly amazed how many islanders seem incapable of seeing any shortcomings in Aurigny whilst branding Flybe as the devil’s own airline!
I hope when the States come to debate this issue that they make a decision objectively and not based on the bizarre sentimentality some people seem to hold towards Aurigny or the blind hatred towards Flybe.
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PS Gina – I would add that those occasions are quite rare!
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Dear all
I have decided to come out of retirement after seeing Stephen John’s comment. This is just a re run of the Guernsey Telecoms sale. Look at the value of that business now, it must be worth millions?
If the buses are worth £1.8M a year, Aurigny must be worth a hell of a lot more than that.
Seek and you shall find the solution.
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@the bridge
Correction: they have lost £6million since 2003, not in one year. When you consider that in the current economic climate over 90% of airlines have lost money in the last few years,(look at the long list of airlines who have gone bust!)Aurigny’s performance is more understandable.
When the states (Sensibly) throw out the planned merger Blue Islands will probably fold, and Aurigny will be back in profit. happy days.
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The Bridge
Aurigny does not loose 6 million per year, it is currently subsidised by the taxpayers who own the airline at about 2 million per year, about the same amount as we subsidise the buses and the farmers at. The airline is profitable on its UK routes, it looses money on the inter island routes because C&E decided to issue a licence to another carrier which reduced Aurigny’s passenger share and therefore its income. We don’t have to run it at a huge profit, Guernsey is small enough to do what it needs to do to protect itself and its people with all its vital strategic assets. I simply don’t care what the business community think about us owning our own airline. Any small community has a right to look after its own security whether it is with transport links or fuel deliveries or whatever it deems necessary. We as a government have a duty to do what is best to protect our people. I don’t think local people are “deluded” at all, they have lived through the promises made by countless airlines in the past and they ask where are all those airlines now?
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I hope Blue Islands do take over. At least they dont charge to change a ticket, or charge to change to a different flight time, or charge for baggage. Flybe is a rip off especially with what they charge if you want to pay with a credit card. No wonder we dont get so many tourists over here, it costs more to get on or off the island than it does for the rest of your holiday.
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Dave Jones – utter tosh I’m afraid.
If the inter island is a problem then why not can it?
Aurigny has a real problem – and so does Blue Islands. They are both making a substantial commercial loss.
If you look at the Aurigny balance sheet you’ll also see a massive problem. No cash and a whole heap of creditors – namely the tax payer and banks. Me.
Apart from the two ATR’s the rest of the fleet is held together with gaffer tape. Same for Blue Islands (as I posted earlier).
If you beleive that Aurigny should be saved fair enough – but you have to realise that for it to continue as is it will cost the Island a massive amount of money. All its Trilanders need replacing – the leased ATR is coming to EOL, loans need servicing – all on top of a loss making enterprise. Nah – not going to happen which is why T&R are trying to offload it.
Blue Islands have the same problem and as I posted earlier I just can’t see the “merger” working in the long run.
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Carl Le B…thankyou for proving what i said…at least they dont charge you for this and that….yes they do Carl they just do it through your tax’s…and at far more than the likes of Flybe do….
And Dave Jones….a very rousing speach…but not really very practical or true…You dont care what the buisness community think?? why do you think theres any airlines here at all?? Just to bring elderly day trippers here??…If it wasent for the buisness community you would have a nackerd old plane coming here once a week….Aurigny will do nothing but require millions more to be ploughed into it…sell it to BI and the job will fall to them and probably end up bringing them both down in time, or back into the hands of the states at even more cost to you and I…But hey you get a free drink!!!
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Alderney’s lifeline in the ownership of one person, very, very scary!
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…anyone here noticed how Mr Coates is becoming a bit of a property tycoon (bought up quite a bit lately) and now this…?
A cynic could be mistaken for thinking this gentleman knows that soon the whole VAT tax loophole thing that lets them and their compadres be located here and profit from it, is about to close…
damn shame, too, at least they provided some alternative forms of employment for those who don’t wish to be finance fodder.
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I agree with Dave Jones. If Aurigny is sold to Blue Islands we will be putting alot of trust in Derek Coates. I have flown Blue Islands many times and have had no complaints. The proposal is very short sighted though as no one seems to think about what will happen to the life line routes to the UK or the inter island routes when Derek Coates wishes to retire from the airline buisness/dies or the airline goes bust. T&R have previously tried to sell the airline but without success (apart from the offers from Flybe of course). The only other turboprop operators in the UK are Air Southwest (currently for sale and also we are told making a loss), Eastern Airlines and Loganair (a Flybe franchise operator). I doubt any of them would be interested in acquring Blue Islands should Derek Coates retire/die etc so that leaves just Flybe as a potential buyer for Blue Islands in years to come and we end up with all flights to/from Guernsey operated by a single airline – not very clever. I have no problem with Flybe but I do have a problem with any airline having a monopoly. Mr. Coates can make promises that there will be no “major” fare increases (note the use of “major”) and that the Alderney-Southampton route is secure. Remember what happened to the Alderney-Jersey route? It was operated successfully by Aurigny for the best part of 40 years and then Blue Islands came along promising big things. Aurigny then withdrew from the route leaving Blue Islands as the sole operator and fares reached the dizzy heights of £105.00 return. Then Blue Islands announced that the route was unprofitable leaving Alderney with no Jersey route (a situation which remains to this day). People have a short memory – KLM promised just days before it pulled out of Guernsey that it was committed to the island. The Heathrow route was lost never to return. Both BA and BMi did the same to Jersey with their Heathrow route. Remeber all the other airlines operating from Guernsey that have come and gone: Dan-Air, BMA, Brymon, Guernsey Airlines/BAF/Air Europe Express, Manx Airlies/Loganair/BRAL, BA CityFlyer, NLM and Lufthansa. And what about the routes that Blue Islands has operated and then axed during its short 3 year history namely:
• Alderney – Bournemouth
• Alderney – Cherbourg
• Alderney – Jersey
• Alderney – Shoreham
• Guernsey – Beauvais
• Guernsey – Bournemouth
• Guernsey – Biggin Hill (charter)
• Guernsey – Cardiff
• Guernsey – Oxford (charter)
• Guernsey – St. Brieuc
• Jersey – Bournemouth
• Jersey – Dinard
• Jersey – Paris (Beauvais)
• Jersey – St. Brieuc
Are we going to see some of the former Aurigny routes axed as well? If Aurigny has lost £6M in seven years that equates to £13 per person per year. Why does it have to be run at a profit? It is providing a service to the community and providing us with security in uncertain times. One final thought, how about the States selling up to 49% of the airline to investors. I am sure there are some wealthy individuals who might be interested. I wouldn’t mind buying a few shares myself.
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How have we arrived at this point?
Why have our elected Deputies not held the Aurigny management to account before? This has’nt just happened, its been going on for years.
Aurigny were being baled out by ‘us’ tax payers before Blue Islands turned up!
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It would be sad to see the Aurigny’s go as they have been a big part of our island. I remeber reading the Joey books as a child.
My main concerns would be as many here hace stated; are we going to loose the routes avaliable, are the costs going to go up?
A concern that I havent seen here is one which will greatly effect students who have to fly to university. Aurigny currently offers double the weight limit to those with student ID. I dont think I would have managed without this as I had to fly to Manchester.
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“A cynic could be mistaken for thinking this gentleman knows that soon the whole VAT tax loophole thing that lets them and their compadres be located here and profit from it, is about to close…”
Scarlett thankfully we aren’t all that cynical. Healthspan is obviously a successful company and you have a man that has invested his earnings back into Tourism Sector. The jury’s out as to how successful that has been but there is no doubt in anyone’s mind within that sector that the investment has been good for the Guernsey product. And long may that continue.
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One of the major assets of many airlines are the scarce slots at places such as Heathrow and Gatwick
I wonder who will own the Gatwick slots if this deal goes through. I suspect another give away of public assets.
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Shame on the States for even entertaining this feeble offer from BI, it wouldn’t be happening if Aurigny was not being run so badly. A change of management and some cost cutting measures are called for – not virtually giving it away to a private company who have nothing to lose when the merged company fails to make big profits.
Blue Islands have no experience of running economy class services. I envisage BI cherry picking the current Aurigny services and continuing to operate a few as what are basically business class flights. Anybody who thinks ordinary people will be able to afford BI prices is deluded, just check out their website. The only time they are priced competitively is at the last minute – and then the flights are full anyway. Fine if your company is willing to pay £2-300 for a changeable ticket, but what about locals trying to get off the island or a visitors comparing the cost of holidaying in Guernsey or Jersey?
Since Flybe will then have a monopoly on all economy seats off the island their prices will rocket. Surely nobody is foolish enough to expect any mercy from them? The States would have to be mad to go through with this. As if we don’t get screwed over enough already by the airlines and Condor, what are they thinking?!?!
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Flybe to operate up to 8x daily to Gatwick with their new Embraer 175 jet, starting summer 2011.
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Bunnie – …. and, your point is ….? Or are you in Maybe’s marketing department and just wanted to let us know?
Still won’t use them!
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Eh-no I’m not, though I now see why you might have thought so. I’m a regular user of both airlines and have no particular axe to grind, just looking for the best deal. I don’t think there’s much between them. What I found interesting was that the States stopped Flybe from using a jet, after the 146s were taken off, but now the jet seems to be coming back, and I prefer the jet to the Dash or ATR and with a choice of 8 flights, the prices will have to good to make it work. I don’t mind if you stick to Aurigny.
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