Talks are continuing with unnamed operators, but the only deal finalised so far is with British Airways, which is due to start flying the Guernsey-Heathrow route next month.
Economic Development president Sasha Kazantseva-Miller answered ‘yes’ in the States yesterday when Deputy Simon Vermeulen asked whether her committee had been approached by other airlines wishing to operate passenger services to the island.
‘We are in continuing dialogue with a number of airlines, including Loganair, but other and bigger airlines as well, although there is nothing I can announce at this stage,’ she said.
‘The air connectivity landscape has undergone substantial changes and continues to be evolving. We are taking a stepped approach in terms of how we evolve our air connectivity market.’
It was reported late last year that discussions had been held with Easyjet, following speculation about the possibility of the low-cost carrier running a route to Luton.
Deputy Kazantseva-Miller said yesterday that her committee hoped that further changes to air connections would ‘start coming through’ as it spoke to interested parties as part of developing a new air policy framework in the months ahead.
Differences of opinion about protecting the States’ own operator, Aurigny, were again apparent as deputies asked questions without notice following Deputy Kazantseva-Miller’s latest update statement to the Assembly.
Deputy Andy Cameron asked two questions about whether Economic Development had carried out modelling about the potential impact on Aurigny’s finances and lifeline links of providing what is believed to be a seven-figure sum of financial support for British Airways’ new Heathrow link.
The committee had not carried out modelling of its own, but Deputy Kazantseva-Miller said Aurigny had provided an analysis ‘of the potential range of impacts’ and that these figures had been considered as part of the work leading up to the deal signed with British Airways.
‘The committee has worked on the basis of core strategic objectives that the 2018 air policy outlined around the importance of reliability, connectivity and affordability,’ she said.
‘We have engaged with industry about the important connectivity objectives which are essential especially in light of the finance sector growth strategy work we have been doing. That has fundamentally highlighted the importance of having a connectivity partner such as a national airline, British Airway, flying into Heathrow.’
Better ways of assessing the impact of changes to air links will be included in the development of a new air policy framework.
Andy Sloan was not worried about the financial health of Aurigny, given that the States had re-capitalised the company to the tune of more than £100m. over the past 15 years or so.
‘The continual mindset of acting in the best interests of the producer and the continual interests of States-owned monopolies is to the long-term detriment of consumers, and the extension of connectivity with multiple providers is in the best interests of the island’s economy,’ said Deputy Sloan.
The Economic Development president assured him that her committee’s air policies would be centred around the ‘strategic connectivity objectives for the Guernsey community and the economy’ and not the best interests of Aurigny.
Deputy Yvonne Burford asked whether Economic Development agreed that any airline was already free and welcome to run services on routes, except a small number with licensing protections, and that their apparent reluctance showed that they were simply not profitable.
‘There is an issue, as there may be interested parties who want to come and operate certain routes, but they are currently being operated by Aurigny, and Aurigny’s financial position has been supported over time, especially around Covid,’ said Deputy Kazantseva-Miller.
‘We need to look holistically at what we want with air connectivity going forward and which are the best airlines and partners to serve that connectivity, and we need to take an open-minded approach.’