Aurigny predicted to lose £3.5m this year

AURIGNY is expected to make a loss of £3.5m. this year.

It has been attributed in Treasury's 2014 Budget report to a number of factors, including poor weather, increased capacity of competitors and higher expenditure on maintenance and aircraft leasing costs.

It also revealed for the first time the cost of a jet to cover the withdrawal of Flybe from the Gatwick route.

The airline will be investing some £23m. for its purchase, including start-up costs, crew training, ancillary ground equipment and hangar modifications.

A Treasury and Resources report earlier this year, asking the States to act as guarantor to facilitate a loan for the purchase, revealed the list price for the aircraft would be between $40m. to $48m.

While it was acknowledged at the time that the airline would be able to negotiate a significant discount on the price, Deputy St Pier was not prepared to give a further breakdown of Aurigny's £23m. investment, due to 'confidentiality clauses' in the deal.