Alderney air links ‘will always need a subsidy’
ALDERNEY’S air service will always need a public service obligation (PSO) subsidy, States Trading Supervisory Board president Peter Roffey has said.
He was commenting as he put forward an amendment with Policy & Resources president Peter Ferbrache to reduce how much is paid to Aurigny under the PSO, if the States backs the C+ proposal for Alderney Airport.
The £24m. proposal would see Alderney have the existing runway resurfaced, widened, extended and strengthened, with a new terminal and refurbished airport fire station.
The current PSO, which was agreed last year, means that Policy & Resources must provide Aurigny £2m. in annual funding for five years to support the service. But Deputy Roffey is hoping to limit that to £1.2m. – 60% of what is currently contributed – when the next PSO contract is signed.
The PSO ensures air connectivity to Alderney from Guernsey and Southampton.
The amendment, put forward by Deputy Peter Roffey and P&R president Peter Ferbrache, would only apply if the States of Guernsey agree on option C+ for Alderney’s airport rehabilitation.
Deputy Roffey said it would aim to give assurance to States members with doubts about realising future revenue savings outlined in the policy letter.
‘Some people say they want to do away with a PSO altogether, and that the fare should increase until Alderney can wash their own face,’ he said.
‘That would be a downward spiral.’
The amendment would guarantee savings of at least £800,000 per year.
Aurigny has said it could not provide a meaningful service to Alderney without a subsidy, and Deputy Roffey said there was no guarantee that any other operator could either.
‘There is a narrative among States members that Guernsey is subsidising too much, and I have some sympathy with that. But it is so that Guernsey doesn’t have to subsidise more in the future,’ he said.
A runway extension would allow Aurigny to stop using the 19-seat Dornier aircraft on the route and replace with much larger ATR72 for Alderney and the rest of its routes, thereby simplifying its operations and saving costs.
Deputy Roffey said it should also be noted that some of the PSO payments relate to the provision of the patient transfer service.
‘This amendment represents a half-way house and guarantees a reasonably rapid return on the additional capital deployed.’
