A PRIVATE bid for Guernsey Airport was rejected yesterday.

A PRIVATE bid for Guernsey Airport was rejected yesterday. But it remains on the market for any interested investors.

And in an indication of his willingness to embrace suitable new investment, the responsible minister Bill Bell said that a private enterprise could run a business more efficiently than a public body.

During a board meeting in the morning Public Services decided to go no further with an offer of private investment from a consortium led by Sedef Ashman.

'We were a bit disappointed that neither her organisation nor Barclays had any really recent experience of running airports,' said Deputy Bell.

Mrs Ashman was involved in a deal that saw Luton Airport go into private hands on a long-term lease in 1998.

Her involvement ended after two or three years, said Deputy Bell.

Barclays and Societe Generale owned I2, which owned the PFI contract for Inverness Airport terminal between 1998 and 2006.

Deputy Bell said the interest had been exploratory rather than specific.

'We have said in the past that if anyone was interested in running Guernsey or Alderney airports we're more than happy to talk to them - we have a duty to,' said Deputy Bell.

'I think there's a general perception that private enterprise can run business more efficiently than a public body, I don't disagree with that, but we're trying to run Guernsey Airport as commercially as we can - I don't think we're totally unsuccessful. We've been given a mandate to run it, make sure it washes its face and provide for capital needs from the surpluses it generates - over the years we've been successful.'

Commerce and Employment wants to see the way the airport operates changed so that it is treated as a strategic asset.

That would mean some capital expenditure funded from general revenue to bring charges more in line with other airports.

Deputy Bell said that if someone could provide it with a subsidy, it could reduce charges to encourage greater use.

'But until we know where the subsidy is coming from we will carry out our mandate.'

He said it was now time to build on the success of the past few years by gradually increasing passenger numbers.

'We hope, together with Commerce and Employment, to attract other airlines and routes so we can give the public of Guernsey and travelling public coming to Guernsey a greater choice than at present.'

Public Services met the interested parties on Tuesday for two hours.

Business leaders, who perceive inadequacies in the airport's operation, were keen that the department pursued the option.