SPECULATION that a new airline would be operating services from Guernsey by the end of the year has been dismissed.

Industry magazine Airliner World published a story in its August edition claiming that Channel Connect Airways would be offering routes from the Channel Islands to the UK and Europe.

But the Commerce and Employment Department, which has responsibility for issuing air licensing, confirmed it had never been in contact with Channel Connect Airways, although it was aware of the report in Airliner World.

The Airliner World story said the Channel Connect Airways venture would be backed by the American Global Group. It added the airline had identified 17 potential destinations in the UK, including Newcastle, as well as locations in France, the Netherlands and Spain.

However, it emerged yesterday that the announcement could be dubious because industry sources told the Guernsey Press that Channel Connect Airways had ‘no licence, no Airline Operator’s Certificate and no history’.

A spokesman for Airliner World admitted there might have been a problem with the report.

‘We are investigating it,’ he said.