Aurigny denied subsidy offered to Flybe
Aurigny has announced it had the chance to run a daily route to Heathrow Airport, but couldn’t get financial support from Economic Development.
The States-owned airline says it approached the committee in November 2017, but was refused support and therefore couldn’t go ahead with the route.
It says the proposed service was much the same as the one offered by Flybe – which will receive about £825,000 worth of subsidy from the States.
In a statement, Aurigny said the new route will have a big impact on its Gatwick route:
‘A new route to Heathrow may result in a small amount of new business and obviously provides another point of connectivity to the UK which will be a welcome convenience for islanders.
‘However it is most likely that the majority of customers using this summer service would have otherwise used Gatwick and will therefore lead to a loss of passengers and revenue on our Gatwick route.
‘We also note that Flybe is being subsidised approximately £20 a passenger leg to provide this temporary route.
‘Aurigny received no subsidy for its Gatwick route and uses the surplus generated on that route to cover the losses on its other routes connecting to our other airports in the UK.’
The airline says it is reviewing the financial impact with the States Trading and Supervisory Board.