Blue Islands’ bid for three-year London City subsidy turned down

Blue Islands confirmed it was looking at reinstating the service, which was dropped by Aurigny last year, as part of a move that would also have seen it operating to London Luton and Dublin.

However, it could not have operated those routes without a three-year subsidy from the government.

While it said ‘productive’ discussions were held with Economic Development, the project was not pursued.

‘Following Aurigny’s cessation of the Guernsey to London City route late last year, Blue Islands engaged with the Committee for Economic Development when it was in discussion with other operators about reinstating a service to London City,’ said a spokesman.

‘Blue Islands’ proposal was to operate a peak time morning and peak time evening rotation Monday to Friday, along with a single rotation Sunday afternoons.’

The airline’s current fleet would not, however, be able to service another peak-time operation, and so a sixth ATR would have been required.

‘Key to the success of this proposal, and to make the best economic use of this new asset, as well as delivering additional benefits to the island, it included operating six-weekly rotations to both London Luton and Dublin – highlighted desirable destinations by States of Guernsey route development consultants.’

Options of either a 48- or 68-seat aircraft were presented, alongside a three-year subsidy required to support this initiative, the spokesman added,

‘As despite competitive pricing the ever present issue of operating to and from Guernsey’s sub-scale market meant there was no standalone commercial viability and all routes were forecast to be loss-making.

‘As an independent commercial entity, Blue Islands could not undertake this financial liability alone.

‘After a series of productive discussions with CfED, the committee decided not to progress further with the project. We retain a good working relationship with the committee, and will continue to proactively seek new route opportunities.’

He said despite the Guernsey public’s continued desire for new routes, airlines could not undertake the financial risk of losses, absent of the committee’s support.

Economic Development president Deputy Charles Parkinson said the committee was committed to supporting Guernsey’s economic competitiveness through its air links.

It was consulting on its air transport licensing framework with operators including Blue Islands, and the States would consider that framework in a policy letter in due course, he added.

‘At the heart of this policy is ensuring that any investment of taxpayers’ money brings an economic return on investment, in line with the Committee for Economic Development’s mandate.

‘All decisions on route support are made on that basis, including in relation to the Guernsey-London City route.

‘The committee is continuing to actively explore with all interested operators how that route can be re-established.

‘The committee also continues to liaise regularly with a range of airlines with respect to other new route opportunities, including, but not limited to, Luton and Dublin.’