AURIGNY boss Malcolm Hart has explained what has gone wrong in 2008 and is certain things will get better.

The 47-year-old chief executive of the airline (pictured) said fuel prices and the economic downturn were largely to blame for an unsuccessful year so far and the States ownership of the group was definitely best for the island.

‘We took two big hits – the first when fuel prices went ballistic,’ he said.

The airline was not doing too badly at the start of the year. ‘We were ahead of budget after the first three months. Then in the period of April to June fuel shot up to $147 per barrel, which hit airlines hard.’

Fuel accounts for about 12% of the company’s cost base, he said.

But that was only the start of problems because the economic downturn meant a big reduction in the ‘wet lease’ business – the part of the company that leases out its third plane.

‘The fuel situation started to balance out – it’s about $60 per barrel now – but then around August the world just fell apart,’ he said.