Aurigny wants to spend $60m

The States’ Trading Supervisory Board, which has responsibility for oversight of the airline, has produced a policy letter, which it will take to the Assembly for approval.

It said the three new 72-seater aircraft would replace the current fleet and would improve reliability, reduce passenger disruption and save the airline more than £4.1m. over ten years, net of purchase costs.

However, it will have to pay £2.2m. to P&R for them to guarantee the loan due to an established policy.

Aurigny’s business case is being published with the STSB’s policy letter, which proposes the States provide a guarantee for the loan for the new aircraft.

That is expected to be debated at the December meeting, and if approved, the aircraft would be delivered in the second half of 2019.

Aurigny chief executive Mark Darby said the airline was delighted that both the STSB and Policy & Resources had given their support to a detailed business case.

‘We have worked incredibly hard to secure the best possible terms for Aurigny, the States of Guernsey, and the Bailiwick.

‘We are pleased both committees recognise that this is an attractive deal, which takes advantage of very favourable market conditions, and will significantly improve the airline’s financial position.’

The new 600-series ATR72 aircraft would be equipped with a new system called ‘ClearVision’, which enables aircraft to operate in lower visibility conditions.

This would reduce the disruption due to fog. Of the total savings of £4.1m. the new aircraft will generate, it is estimated the ‘ClearVision’ system will save the airline £1.1m. over 10 years as a result of further reductions in delay and disruption.