THE Commerce and Employment Department is set to report on the regulation and licensing of air services. When the States bought Aurigny last May it was announced that there would be a review of existing arrangements but that no findings would be presented for at least one year.

The end of that period has also coincided with fresh criticism of Jersey’s open-skies policy.

The Jersey Air Passengers’ Association and Rockhopper have both warned that intense competition on some routes could lead to airlines pulling out because of a lack of financial viability due to over-capacity.

‘While the public should seize the opportunity for cheap travel, the island authorities should worry about the future,’ said JAPA chairman the Rev. Anthony Swindell.

‘What strategies are in place in case of a crisis? Will our open skies lead to empty skies? Is it sensible to license four competing airlines on the same route?’

Rockhopper chairman Noel Hayes was also critical of Jersey’s new air-licensing policy. But he denied making a U-turn following his previous criticisms of Guernsey’s stricter regulations.

‘In principle I support open skies, but I do have two major concerns,’ he said.

‘Firstly, seasonal operators should not be allowed to jeopardise airlines providing year-round services and secondly, the island authorities need to take account of the size of a route and allow an appropriate level of competition.’

The Commerce and Employment report on air licensing will be considered by the Policy Council, which will make the final decision on future policy.

Until any decision is reached, Commerce and Employment will operate air-service regulation and licensing under the same procedures as the former Transport Board.

One outstanding contested air route application from the previous government administration is set to be heard, but no date has yet been fixed.

Mr Hayes said that Guernsey’s current policy was too restrictive but also too arbitrary and not based on clear guidelines.

‘In essence, Guernsey has not gone far enough and Jersey has gone too far. Guernsey is too restrictive, but, in an attempt to get away from that, Jersey seems to have gone too far.

‘But competition overall is good and I support the Jersey policy at the moment more than Guernsey’s because, in the end, Jersey will end up with the right result because things will balance out when some airlines have to pull off routes.’

Having also supported deregulation, Rev. Swindell denied making an about-face.

He said that he still supported low fares and competition but added that the industry needed to move to the middle ground.

‘At the moment we are presented with only two alternatives – going back to the highly restricted licensing system or the current open skies policy.

‘But I would like to ask if there is something between the two.

‘Could, for instance, the airport charging structure be redesigned to encourage sustainable competition and growth rather than market saturation?’