Airport losses in Alderney top £700k
Saturday 22nd May 2010, 2:29PM BST.
PUBLIC SERVICES used money set aside for road maintenance in Guernsey to pay for increased losses incurred at Alderney Airport.
And the department admitted it might have to ask the States for more money to fund the airport in future as its trading losses increase by more than 20% to nearly £735,000 last year.
It had been budgeted that the airport would lose about £600,000 last year, but the States accounts showed the true deficit.
PSD said it could absorb the higher-than-forecasted loss on this occasion because it had not spent all of its road maintenance budget.
Minister Bernard Flouquet said the airport was a lifeline service, so although the losses were a concern the department had little option but to absorb them. But he admitted that the current situation was less than ideal.
- Read the full story in the Guernsey Press. See below for subscription details.
- To read Guernsey Press stories in full click here for subscription details. Individual editions are now available online.
Island Life
All about Guernsey
Ambassador of the Year 2011
History & Heritage
Visitor Information
Guernsey's government
Campaigns
Voice For Victims
Voice for Victims is a campaign aimed at promoting the rights of those affected by child sexual abuse.
This is Guernsey
Guernsey Press
Useful Links
When they got rid of motor tax they said this would not happen.
Report abuse
Simon… What motor tax got to do with the airport over spending again ?.
Report abuse
melc
Motor tax was collected and used for road maintenance. This is now collected on fuel and according to this article has been used on Alderneys airport!
Report abuse
Not a helpful story Alderney needs an Airport.
Report abuse
I wonder how much the Airport in Forest loses?
The Airport in Alderney has completely unnecessary security, Admin that is based in the other island that charges a fee to it’s account every time they mention it’s name, firefighters who got the same wage increase as the Guernsey ones, and a collection of ATO’s who earn parity with there colleagues in other islands for a smaller airport? This all makes sense how, oh wait that how its run by the States Of Guernsey.
At least they have not managed to build a new terminal building at the cost of putting up the landing fees, because higher prices for thing like that would make less people come over to the Islands so it would reduce the amount of fees collected so there would be less income, oh sorry they already did that. :-)
Pax
Report abuse
What Veritas says is sadly true. The “loss” is purely on paper, and is due to crazy accounting. How much does Guernsey charge Alderney for services, for example? Alderney airport should be run as a separate company by Alderney States, as is the Water company. And publish annual accounts so that the figures are clear for all to see.
There is also the strange fact that the people buying Fort Tourgis are forcing Alderney to spend £400K of the FT £1M purchase price on up-grading the airport terminal. How/why is not clear as it works perfectly well, but that is the deal. It is not clear how that will affect the annual costs/losses.
What is very clear is that the cost of flying to Alderney is prohibitive, and tourist numbers are decreasing as a result. True airport running costs should be established, kept to a minimum, and every attempt made to reduce the overall flight cost. The more visitors the better for the island, the airlines, and for the airport profit/loss.
Report abuse
The simple answer is close Alderney airport, use the money saved to extend/repair the Guernsey Airport runway and the 4 people who go over to Alderney can catch the boat.
Sorted!
Report abuse
Taff – whilst the current collection of buildings & Portacabins sort of work you can’t deny they are becoming a bit long in the tooth?
I recently flew from Plymouth airport and something like their terminal building struck me as being ideal for Alderney if scaled down slightly.
http://www.plymouthairport.com/gallery/album03
Report abuse
Doug, they may be long in the tooth, but they provide an adequate service, and have a certain charm. My grown-up kids think they are great – more like a bus-stop, but they work.
Why spend £400k on new buildings when the airport is losing £700K pa, and passenger numbers are decreasing due to high costs? Any spare money should be spent reducing the cost of flights and encouraging more visitors – no-one will visit because of a new terminal.
Once the numbers increase and the running loss comes down – if ever – upgrade the terminal. I do understand that may not be the way of doing things locally.
Report abuse
Taff. There does seem to be some debate as to how a loss of £700,000 is calculated given an apparent lack of transparency in the accounting process.
However, the airport really is our only form of public transport and with most such systems some subsidy does seem inevitable. The UK rail network still requires some billions from the state but I notice rolling stock and facilities being upgraded whilst fares are rising.
The current airport may well be somewhat of a bus stop and for those of us who use it regularly the novelty has worn off On fog bound days 30 or 40 passengers milling around the place rather fills it up.
If one books far enough ahead the cost is not so high so I suspect most of our visitors are able to do this and not pay through the nose. It is those of us who live here and have to make last minute trips who pay through the nose and in doing so are already, in effect, subsidising the cheaper fares.
Get a cheap fare, buy your duty free in both direction and really it’s not so expensive to get here.
Your last sentence appears a little patronising?
Report abuse
Mike you should stand for Guernsey states
1. Overspend by millions on new terminal building.
2. Overspend on proposed new runway.
3 Overspend at marina.
This does not seem to matter to Guernsey, small overspend compare to the above, and you want to close Alderney.
How about if we close GUERNSEY this would make it cheaper for Alderney residents.
You seem to like to take our taxes,but not give anything back when needed for our life line
These are the reasons i believe you would make a good GUERNSEY states member
Report abuse