Aurigny waiting for political backing on fog-busting ATRs
AURIGNY could find out within weeks whether it has crucial backing to buy new fog-busting aircraft.
The president of the States’ Trading Supervisory Board, which has oversight of the publicly-owned airline, said the board could made a decision on whether to recommend purchasing the new ATR-72 600s by the end of October – if the airline provides its business case in time.
Deputy Peter Ferbrache also said that Aurigny may have paid a $600,000 reservation fee for three new aircraft.
His comments come after the airline said the reservation fee allowed to it secure advantageous terms and was fully refundable.
Aurigny also said that the aircraft would have a ‘positive effect’ on its financial position by cutting disruption and ensuring a ‘fit for purpose’ fleet, and that it would not be seeking capital investment from the States to buy the planes – which are expected to replace its ATR 72-500s.
Speaking to the Guernsey Press, Deputy Ferbrache said the STSB would have preferred Aurigny to have consulted the board before signing the letter of intent to purchase the new aircraft – while recognising the airline had the power to take such action. ‘My understanding was that pre-me becoming president of the board, there was an expectation that they wouldn’t sign a letter of intent without the board agreeing that.
‘But there can be misunderstandings,’ he said.
‘We were disappointed that they went ahead with signing the letter of intent without us discussing it, but there might have been a commercial imperative.
‘They had the power to do it, and what is done is done, and we now have to deal with the situation as we find it.’
On the reservation fee, Deputy Ferbrache said: ‘I am pretty sure that is $600,000 [£465,000]. In other words 1%, but they will get it back if they back out by the end of October.’
On the overall purchase of the planes, he said: ‘Aurigny would get the money from a normal commercial entity. The States would just guarantee it.’
Deputy Ferbrache added that the STSB had not yet received the business case from Aurigny and would not be able to take its recommendation to the States until November or December – with consultations also needed with P&R given the amount of money involved.
‘We need to see their business case and they have said they will be able to give it to us shortly. They will know before the end of October whether we, the STSB, is happy with the business case if we get it in time.
‘Depending on that decision, I would anticipate Aurigny being able to go back to ATR by the end of October.’
Aurigny declined to comment on what Deputy Ferbrache said.
