'Merger talk sign of weakness'

A PROPOSAL to merge Blue Islands and Aurigny simply underlines their poor commercial performance, rival airline Flybe has claimed.

Blue Islands chairman Derek Coates said last week that his airline and the States-owned Aurigny could join together to create a 'major player' in the local market.

His comments came at a specially arranged meeting, which excluded Flybe. It was held between the two airlines and States members to discuss Commerce and Employment's plans to liberalise air route licensing by handing responsibility to the Office of Utility Regulation.

Mr Coates said the proposals amounted to an 'open skies' policy and could hurt smaller airlines. He added it was a bad idea to allow a dominant airline to have control over when it flies.

However, Flybe dismissed his concerns, stating that it 'strongly rejected the monopolistic references made against it', by Mr Coates.

Ian Taylor (pictured), Flybe's general manager in the Channel Islands, said the airline had been a long-time supporter of liberalisation on the premise that it would lead to great benefits for Guernsey residents.

'Flybe can only assume that Mr Coates's merger proposal underlines the poor commercial performance of both Blue Islands and Aurigny and that this attempt to seek protection from competition is one that pursues the hidden agenda of his airline.'