‘Show us your losses’

Thursday 2nd September 2004, 12:00AM BST.

ROCKHOPPER has challenged Aurigny to back up its claim that it was losing hundreds of thousands of pounds on inter-island routes. Chief executive Noel Hayes said the figure quoted of £560,000 on the Guernsey-Jersey route was clearly wrong.

Yesterday, Aurigny managing director Malcolm Hart said the figure referred to a potential loss of income for 2004 and was not a trading loss.

Mr Hayes wanted more information. ‘Even if every passenger that Aurigny has lost to Rockhopper had been paying the outrageous full fare of £86 return, that figure is at least 40% greater than it should be.

‘I believe that when members of the States were asked to vote on the acquisition of Aurigny [in May last year], they were never shown the company’s accounts.

‘We trust that any future losses reported by Aurigny will not try to blame the States’ decision to increase the number of licensed operators, because every airline has to deal with competition as part of its day-to-day trading.’

Mr Hart said Aurigny was now reviewing its schedule to determine which routes were viable and whether an obligation existed to provide off-peak services.

Rockhopper would happily pick up the pieces from any reduction.

‘If Aurigny does drop off-peak services, we’ll review our planned schedule to see if we can fill the gaps that will be created,’ he said.

Rockhopper had always maintained that its Islander aircraft was better suited to less-busy routes and off-peak services.

He said it would offer more services on all inter-island routes in its autumn schedule.

Commerce and Employment deputy minister Carla McNulty Bauer said that everything had been taken into account when it reached the decision to grant the licence to Rockhopper.

The potential loss of £560,000 had not been part of the written submission because that was put in about six months before last week’s hearing. The department had not seen written confirmation of Aurigny’s claims.

‘But one would expect that when they come from the mouth of the managing director, they will be correct,’ she said.


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