Interest remains in purchase of Aurigny
Thursday 16th September 2010, 2:29PM BST.
ANOTHER Aurigny takeover bid could be possible in the future after the owner of Blue Islands said he would leave the door open for Treasury to reconsider its stance.
Blue Islands failed in its bid to buy the States-owned airline after Treasury this week pulled out of an agreed-in-principle deal.
Derek Coates (pictured) launched a fierce attack on Aurigny in yesterday’s Guernsey Press and all but ruled out ever working with his rival to generate joint efficiencies, as had previously been suggested in a ‘plan B’ alternative to a straight takeover.
The entrepreneur claimed Aurigny was ‘incompetent and devious’ but he refused to rule out making another attempt to buy the States-owned airline.
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Derek Coates characterisation of Aurigny as ‘devious and incompent’ is, frankly, astounding.
It sounds like a little child, who being told he can’t play with another child’s rattle, throws his toys out of his pram.
If this really is his true view of the airline and, by extension, its management and employees, then it seems to me to be clear exactly what would have happened to those employees the instant Blue Islands would have gained control.
He’s now showing his true colours, and they are not blue, but green (which is what you get when you try and mix yellow with blue).
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Derek Coates’ cheeky offer should have been laughed out of the States if they were not so clueless about how to turn Malcolm (“we’ve made a profit in 2 out of the last 5 years”) Hart into a businessman. Yes, we know Malcolm – the 2 easy years not the 3 difficult ones.
Now this absurd ‘proposal’ is off the table The States should not contemplate selling Aurigny at this awful time and concentrate on putting a proper leader in place who knows how to run a business.
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To brandish MH as an incompetent businessman is ignorant. Yes, the airline has lost money in the last few years, but this is largely due to the somewhat minor fact that the world has been going through one of the deepest economic recessions in the recent past. A huge percentage of airlines have made losses in the last few years, with small airlines being especially vulnerable.
A year ago the states commissioned an independent report (by KPMG or Deloite, can’t remember which) which concluded that the Aurigny group was a well run business. If you look at the aircraft utilization and scheduling it is obvious that in the last few years under MH the airline has become a much leaner and focused business.
Yes, undoubtedly inefficiencies will exist, but so do they in any company. Undoubtedly changes do need to be made, but with events such as the ash cloud and the unfavorable market conditions it is perhaps surprising that losses have not been higher (i.e Air Southwest which is an airline of comparable size, yet lost several million more than Aurigny last year.)
Attacking MH merely highlights a lack of understanding of aviation, which is after all one of the fiercest and hardest industries in which to make money.
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GCI Student
Very well said.
I would also add the question of asking what experience Derek Coates has of ever running an airline? Its hardly the same as selling vitamins!
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It seems to me that all parties have not played an ethical wicket in this sad dispute. Sadly, as has been said, not-very-bright politicians sowed the seeds by allowing such competition in the first place. 1] Ignore comments by ‘snake-oil’ salesman throwing toys about – such arrogance is not in the least helpful 2] Immediately revoke any BI licences that affect profitable Aurigny routes 3] Allow others with some common sense to review situation 4] Consider a change of MD at Aurigny 5] Operate Aurigny as a ‘local’ airline, without loss-making routes Whatever happens, cease allowing amateurs to judge how to run a precarious operation in today’s competitive and margin-sensitive market
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