Aurigny is looking to replace its two Dornier aircraft with 'damp' leased Twin Otters to save on maintenance and operational costs and improve resilience.
Guernsey's airline operates the Alderney routes under a Public Service Obligation, which attracts a government subsidy.
Aurigny is looking to replace its Dorniers, bought new and less than 10 years old, with de Havilland Twin Otters.
The move is designed to cut costs and improve resilience.
On several occasions, including recently, a need for aircraft maintenance has left Alderney without operational aircraft.
Deputy Peter Roffey told States members there had been false rumours about the potential aircraft transition:
"It is not for Aurigny to buy any Twin Otters. The idea is that Aurigny would reduce to only having ATRs."
He said this was known in aviation as 'damp leasing':
"The planes would belong to someone else but would be badged in Aurigny's colours and flown by Aurigny's crew.
The big advantage of that is there'd be huge cost savings for maintenance for Aurigny, only having to maintain one type of aircraft."
The Twin Otter fleet owner would be responsible for their maintenance.
Also being considered is a third leased plane for Medevacs.
Deputy Roffey said Aurigny was in talks with two Twin Otter fleet operators. This aircraft type was considered by the airline back in 2015 when Aurigny was replacing the Trislanders but it opted to buy two used Dorniers and then two new ones.
Any change would require shareholder approval from the States Trading Supervisory Board and Policy and Resources which set up the PSO.

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