FLYBE was incredulous at the decision by States members to reject an open skies policy.

‘Guernsey has chosen to remain the only market in the whole of Europe to maintain such a protectionist stance,’ said Mike Rutter (pictured), its chief commercial officer.

He said the company understood the States had received strong legal advice that its existing policy on airline regulation was open to challenge.

‘Clearly the vested interest the States has in propping up the heavily loss-making Aurigny has had some bearing on policy, but the decision still beggars belief in 2009,’ he said.

That was something denied by Commerce and Employment minister Carla McNulty Bauer during Friday’s debate.

The department proposed to deregulate air route licensing, opting for a more open skies policy, but was heavily defeated.

The vote followed fears that a more free-market approach could affect smaller carriers, who would be forced to compete with larger airlines.

There were concerns also that it could have jeopardised all-year round services to and from the island.

Members agreed the Office of Utility Regulation would take over responsibility for licensing air routes from Commerce and Employment.

Blue Islands chairman Derek Coates was delighted by the States vote. ‘It reduces the likelihood of our being dominated by a single carrier which would inevitably lead to much higher prices in the longer term,’ he said.

Aurigny managing director Malcolm Hart said it was vital smaller jurisdictions, especially island communities, looked after their independent links.