AURIGNY has turned to high-profile private equity figure Jon Moulton to improve its fortunes.

Mr Moulton, who has a residence in the island, has replaced Paul Fairclough as chairman of the Aurigny Group. Mr Fairclough stood down at the end of last year after six years at the helm.

Mr Moulton has a reputation for identifying underperforming businesses, buying them out and turning them around.

Aurigny has experienced financial difficulties since the States took it over in 2005. Its holding company has drawn down £5.8m. of a commercial loan and the group also has £16m. outstanding on a loan to purchase two new ATR72-500 aircraft.