BLUE Islands has welcomed the possibility of private investment in the airport. At the same time it has hit out at its current management.

Derek Coates, the airline’s chairman, said that the airport was one of the most expensive in Europe with minimal incentives to start new routes.

Public Services is set for talks next month on a possible lease arrangement with a private investor.

‘The current management may be open for business but they are not positive, so if a change addresses these shortcomings, then such a change may be welcome,’ said Mr Coates.

‘However, our island is utterly dependent on sustainable and appropriate air links, so whatever happens to the airport in the future, we must recognise that any changes to such a vital part of our infrastructure are considered beyond a very narrow profitability mandate.’

In principle, the airline would have no objection to the States leasing the airport to a private company, he added.

But there would have to be strict agreements addressing the issue of costs and service provision – with clear break clauses if these were not met.

‘A private operator will have to make a profit, so some improved efficiencies and cost cuts will have to be made as well as offering new benefits for customers that can be reasonably charged for. It’s a sad indictment, but these changes are currently not being addressed fully or imaginatively.’

Mr Coates said part of the historic problem appeared to be that the cost of the airport is depreciated in the accounts and creates a need to charge high prices to recover these costs.

‘In my opinion, our airport should be seen as a strategic asset that serves as an economic enabler,’ he said.

‘If the States were to write off the build cost, then the need to recover a depreciation element with unreasonably high airport charges would vanish. The money has been spent so why not write it off, just as we charge road works to Public Services?’

There are severe reservations within Public Services about a private deal.