'Air subsidy helps us keep down fares'

AURIGNY'S managing director has defended Guernsey's airline subsidy.

The system has come under fire from Treasury minister Charles Parkinson, who described its benefits as trivial and insignificant, and Blue Islands boss Derek Coates, who at first refused to accept it then directed it to a local charity.

Commerce and Employment pays £1.05p for every passenger on key air routes, excluding inter-island.

Aurigny MD Malcolm Hart (pictured) said the money was key to airlines operating through Guernsey.

'The route subsidy has played a key role over the years in allowing Guernsey to try and stay competitive in the face of an airport charging structure that is amongst the highest in Europe,' he said.

'The subsidy alleviated the ridiculous charge that was introduced to help pay for the new terminal building, but effectively discouraged people further from wishing to fly to and from Guernsey.'

He said the system could probably do with a rethink.