A POTENTIAL investor is interested in taking over the airport. But Public Services has told her that it has ‘a number of reservations’ about such a move.

Minister Bill Bell confirmed yesterday that talks on a ‘privatisation’ deal – he called it ‘some form of lease arrangement’ – had started.

Deputy Bell would not name the interested party, but it is understood to be London-based investor and company director Sedef Ashman.

She is reported to have a history of investment in regional airports globally, but industry experts yesterday said they did not know the name.

‘We have received an isolated approach from a private investor who has expressed an interest in some form of lease arrangement,’ said Deputy Bell, whose board backed a private approach to take over Alderney Airport 18 months ago, only to have the plans shot down by residents.

‘Some basic information has been exchanged with the investor, but the department has a number of reservations in moving the airport into private hands and has made those known to the investor.’

Both sides will meet formally for the first time on 12 September.

‘I have always said that if anyone wants to run the airport to come and talk to us. We’ve had an approach and now we’re inviting them to come and talk to us,’ said Deputy Bell.

‘It’s no more than that.’

The would-be investor is believed to have requested no publicity in the dealings and is understood to be keen to stay low profile.

Deputy Bell said that staff at the airport were being kept informed.

Commerce and Employment minister Stuart Falla was cautious about the news.

He rotates the chairmanship of the States external transport group with Deputy Bell.

‘To me it’s not a solution now, but I don’t discourage the States from exploring alternatives.

‘You are always educated by talking to people who have done these things before.’

Aurigny managing director Malcolm Hart said he believed that new owners would struggle to make a financial return on any investment.

‘I’d be neutral on ownership to a certain extent. It doesn’t matter to me who owns the airport if a new owner would be committed to reducing fees. Attempting to expand the client base is something that would be welcomed.

‘If a return on capital has to come from extra charges, I’d be less enthused by the concept.

‘Generating a return by cranking up charges is absolutely wrong for an island,’ he said.

The airport made an operating surplus of nearly £2m. last year, minus depreciation costs, but has been operating on a financial self-sufficiency policy which has seen landing and passenger charges increase to be among the highest in the British Isles.

Fees from traffic were nearly £5.5m., a slight fall on the previous year, as part of a total income of £8.36m.

The department has attempted to increase income through other routes including car parking and retail – another duty free shop is being considered in the arrivals hall.

But industry sources said it was not clear where a return could be made unless a new operator speculates on increasing traffic and drops charges or cuts jobs.