Guernsey

'Unsustainable' Aurigny losses to rise to £7.6m

Aeroplane
Image caption The state-subsidised airline's losses for 2019 are predicted to rise by 73% to £7.6m

Projections of the annual losses for Guernsey's national airline Aurigny have been revised to £7.6m.

This "significant increase" represents a 73% increase on the original forecast of £4.4m from the 2019 annual budget.

Speaking in the States earlier, President of Policy and Resources Gavin St Pier outlined the revised losses for the state-subsidised airline.

The island's most senior politician described the current subsidy as "not sustainable".

"This is clearly a troubling development, as the airline's losses are borne by the taxpayer," Deputy St Pier added.

He argued the "deterioration" was explained by "numerous factors", including increased competition from other airlines operating subsidised routes.

Deputy St Pier also proposed the States hold a debate over the future of the airline's subsidy.

Aurigny acknowledged the "deterioration in financial position", claiming it was down to recent decisions to open the provision of flights to the islands to competition.

A company spokesman said a "coordinated approach" with the States to develop a strategy which "balances customer choice with total cost to islanders" was required.

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