Owning Aurigny not States’ business, says Treasury chief
Saturday 7th March 2009, 9:29AM GMT.
TREASURY minister Charles Parkinson does not believe the States should own Aurigny.
The department acts as 100% shareholder in the airline, which now requires £6m. of public money to recapitalise it.
Treasury appears divided on the concept of owning the airline but there are no immediate plans to sell it.
‘I don’t think we should own Aurigny because I don’t think it’s a core public service and our ownership of the airline compromises our position dealing with other airlines and the licensing position,’ said Deputy Parkinson (pictured).
The States bought Cabernet Ltd, the parent company of Aurigny and Anglo Normandy Aeroengineering, in 2003 to secure runway slots at Gatwick. That decision was reconfirmed in 2005.
The £6m. would allow the company to repay its existing short-term borrowing facilities, which are guaranteed by the States.
Cabernet has commissioned an independent review to analyse profitability and cash flow forecasts and review its efficiency.
This report will form the basis of a Treasury States report on the strategic direction and funding of Cabernet.
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Some good sense from Deputy Parkinson. The States should concentrate on governing the island, not playing “businessmen” with taxpayers money, throwing money into the bottomless pit of Aurigny.
I would far rather see the States sell off Aurigny and use some of the money saved to provide financial incentives to commercial airlines in return for cheaper island travel.
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Wow I agree with a Politician.
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Best get rid of it in a fire sale, it was a stupid idea in the first place. Better still just give it away like they did with Guernsey Telecoms.
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Purchase price of £5m. May 2003
Plus the impending £6m. to enable the company to repay its existing short-term borrowing facilities, which were £4.2m so I guess the other £1.8m is to give it new working capital.
Not forgetting the grant that they get each year!!
Potential total cost to taxpayer £11m+, which equates to a few hundred pounds to every taxpayer. I think I would prefer to have invested my element elsewhere.
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Where else in the world are aircraft purchased nowadays? Leasing is preferable
In the week Malcom Hart is talking about ’6 extra seats’, we find that most routes are down 5-12% last year.
Roll on open skies and the end of Aurigny
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So you’d rather have Flymaybe Jackie?
We should be proud of Aurigny. It has brought benefits to us Islanders by securing landing slots at a major London airport. You would have no doubt have soon moaned if we had lost them.
Yes the planes maybe should be leased, but we got a good deal on the ATRs due to the exchange rate.
Like the fuel tanker purchase, I think this was in the Island’s best interests.
Don’t get in by Flybe’s propeganda. It is the only thing about that airline which is cheap.
PS – I don’t work for Aurigny in case you were wondering, and neither am I dolly off her trolley!
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