Blue Islands bid to buy States airline Aurigny

BLUE ISLANDS has struck a deal in principle to buy Aurigny.

In a join statement released early today, Treasury and Resources and Blue Islands confirmed they have reached a preliminary agreement that would see taxpayers relieved of the burden of propping up the loss-making States-owned airline.

However, minister Charles Parkinson confirmed that the States would have to clear up to £6.4m. in loans Aurigny has accrued before the deal could go through.

He added that the States would be likely to retain ownership of the airline's two new ATR aircraft and lease them to Blue Islands. The States agreed for Treasury to act as guarantor for the loan to buy the planes, which cost about £9.3m. each last year.

Both Treasury and Blue Islands will now enter a two-month period during which they carry out due diligence.

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