The States Trading Supervisory Board has responded to a series of questions from Deputy Simon Vermeulen about the airline’s performance and operations after the deputy raised questions about its confidence in the airline’s board, its financial position, and the costs of recent wet leases of aircraft.
‘Ownership is not and should not become a blank cheque – it requires active stewardship of a strategic asset on behalf of taxpayers, rather than treating our airline as a sacred cow,’ said the board in response.
STSB said the airline’s 2024 financial results, with a £6.5m. loss recorded, were not satisfactory, but said that there remained clear justification for continued public ownership of the airline.
However, it refused to detail the use of wet lease arrangements in 2025 until the audited annual accounts are published – though Aurigny has said that these were substantially reduced compared to the previous year – and said that the airline’s profit or loss would only be published in its accounts. STSB said that it was an engaged and active shareholder, and saw that responsibility as being two-fold – to insist on improvements in Aurigny’s efficiency and financial performance so it does not become a recurring burden; and, to ensure that any support provided is transparently accounted for within the wider debate about the States’ fiscal position.
But it did not run the airline and would hold its board to account to do so.
Deputy Vermeulen also asked if the STSB believed that the Aurigny board was impartial and not conflicted with other airlines.
‘No evidence has been presented to the STSB that Aurigny’s Board is acting other than impartially in Aurigny’s interests. If such evidence ever emerged, it would be addressed through established governance mechanisms rather than through public comment,’ STSB responded.
The deputy also asked questions about Aurigny operating ‘another airline’s route’ but the STSB said that what appeared to be a reference to Aurigny’s wet lease support for Isles of Scilly Skybus to temporarily maintain the public service obligation air service between Newquay and Gatwick was an operational decision for the airline, which was benefitting financially from the move.
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