Aurigny gets $60m. go-ahead to buy ATRs
AURIGNY can press ahead with buying three new ATRs with ‘fog-busting’ capabilities after the States agreed to guarantee a $60m. loan for the deal.
It followed a debate in which several members questioned whether they could trust the business case being made by the airline, that had also been independently verified, which promised reduced maintenance costs over the current ATRs, better reliability and fewer fog delays thanks to the ClearVision system.
Members voted by 23 to 14 to provide all the guarantees needed for Aurigny to replace its three existing ATR72-500s with ATR72-600s. The deal is now expected to be finalised within days.
Aurigny CEO Mark Darby sat through much of the debate in which the management was both criticised and praised.
‘This decision is good for our customers, it will improve reliability of service and reduce disruption due to fog; it’s good for taxpayers, we can make meaningful savings in operating costs; it’s good for our staff and a real vote of confidence in them,’ he said afterwards.
The States’ Trading and Supervisory Board, which has political responsibility for the airline, had recommended the deal after reviewing the business case and an independent report on it.
Mr Darby said that having given STSB the mandate to act as shareholder it was the right decision by the States that they were trusted, as were the experts they appointed.
Some members questioned whether the predicted savings would be made, citing past pledges by the airline when buying the Dorniers.
Mr Darby said Aurigny understood those concerns.
‘We’re in a difficult position, but as Deputy [Peter] Ferbrache [STSB president] said, we’re given a really thankless task – deliver fantastic service for no cost to the States at rock bottom fares.
‘The management team we have got are very professional with lots of experience, I don’t think we’ve ever misled the States on anything.
‘People think we operate in a perfect world where nothing changes. We make our forecasts in good faith, we provide that information and it’s scrutinised by STSB, that’s their role. I think it’s important that they are left to get on with that role, we can’t be micromanaged by the States, it has to come from a smaller team.’
The business case concluded that replacing the older aircraft would save £4.1m. in the next 10 years.
ATR has forecast that 50% of current ATR flights that were cancelled due to poor visibility would have operated had they been fitted with the ClearVision system
The new planes will have larger overhead lockers than the current ATRs.
Members decided not to charge the airline a £2.2m. fee for guaranteeing the loan, as had originally been proposed.
