Aurigny to launch a London City service from September

The service, which should leave the island at about 8am and return in the evening, offering a full working day in the City of London, will be primarily aimed at the business community and would attract a premium fare, Aurigny chairman Jon Moulton said.

The airline will start the service with a Dornier aircraft but might upgrade to an ATR42 if the route proves popular, he said.

'It will cost a great deal more than Gatwick – City is expensive, the landing fees will exceed our fuel bills, but it will mean better links,' he said while on the panel at the Channel Islands Funds Forum.

'City is a big step forward.'

Mr Moulton said the airline had taken great strides in recent months to become more efficient and look to end years of States operating subsidy, including updating the 'extremely elderly' fleet and the codeshare agreement with Blue Islands on the inter-island route.

The inter-island decision and Flybe's decision to withdraw from Gatwick services had seen Aurigny lose two 'fierce competitors' on key routes, he added.

'We're very conscious that the airline is a servant of the States, not running the States.

'Hopefully we will get it to break even and require no subsidy later this year while we try to give the best service we possibly can.'