THE Aurigny Group exceeded its operating budget last year by nearly £600,000. Figures published today reveal that its two companies – Aurigny Air Services and Anglo Normandy Aeroengineering – also declared a trading profit before interest and reorganisation costs of £386,000.

However, restructuring costs from its ‘root and branch review’ undertaken in 2004 and interest paid on States-guaranteed commercial loans meant the group made an overall loss of £742,000.

Aurigny managing director Malcolm Hart said the figures had exceeded people’s expectations and the company had turned a corner.

‘It’s been a difficult couple of years for us,’ he said.

‘This year will be one of consolidation and if we get decent trading conditions between now and the end of it, we will have reached break-even point or even be in profit,’ he said.

The £941,000 exceptional costs in the accounts related primarily to the closure of the airline’s Saab operation, which Mr Hart stressed was a necessary one-off cost incurred to ensure the long-term future of the business and the island’s air links.

‘We always expected them and, although they’re significant, they do little to disguise the strength of our recovery,’ he said.

The airline side of the business was trading well, despite high fuel prices and adverse exchange rates in 2005.

He said it was pleasing that Aurigny had not used a penny of taxpayers’ money since the States bought the airline in May 2003 for £5m. in order to secure the Gatwick slots.

Islanders and States members could be proud that Guernsey had a lean, competitive and cost-effective airline that was capable of meeting air-transport challenges of the future.

On the Gatwick route, Aurigny beat its passenger revenue budget by 5% and carried 7,000 more people. Off-island charter was also up by £800,000, bringing vital revenue to the island.

Mr Hart said the difficult decisions that the board had made under the chairmanship of Stephen Jones had been vindicated by the figures and he thanked Mr Jones for his guidance during what had been a difficult period.

He also praised the group’s 309 employees for rising to the challenge that had delivered the Bailiwick an enterprise of which it could be proud.

‘They have made sterling efforts in the face of uncertainty to ensure that we’re a strong choice for passengers,’ he said.

The good news was attributed to improved branding, efficiency, punctuality, and customer service. Last year, 90% of flights had left on time and 97% within an hour of scheduled departure.

In a 2004 customer survey, 78% of passengers had said they preferred Flybe when flying to the UK while only 18% favoured Aurigny.

A survey this year showed a 47%-45% split in Aurigny’s favour.

‘It’s a great improvement made even worse for our competitor since the introduction of their so-called ﾓfair dealﾔ on baggage charges,’ he said.