Alderney risk losing direct link to UK

The next six months will determine what, if any, hope there is for a service that many Ridunians consider vital and some in Guernsey consider an unaffordable luxury.

Economic Development last week invited airlines to tender for two public service obligation (PSO) contracts: Alderney-Guernsey and Alderney-Southampton.

It will be fascinating to see who comes forward and bids for the latter.

For these are not equal offerings. Alderney-Southampton is the black sheep route with uncertain funding while Alderney-Guernsey is the golden fleece.

Policy & Resources refers to this discrepancy in the Budget for 2019. It is ‘firmly of the view’ that no funding should come from general funding for the Southampton service. Rather than pay out money from central coffers it would be prepared to see the route close.

If tenderers for that route need a subsidy – and that must be likely given that the route currently loses £1.8m. a year – the money has to come either from the States of Alderney or from Economic Development’s Future Guernsey fund.

Failing that, the operating airline would have to make the route pay.

It is a strong line for P&R to take, and not one that will go down well in Alderney.

However, the desire to stem the flow of cash into Aurigny has clearly hardened. Having paid off losses of almost £20m. in 2015 Guernsey already needs to open the cheque book again to help fund millions in the airline’s overdraft. Most of those debts (£3m.) stem from the two Alderney routes.

P&R makes the point that the costs of supporting Alderney through Aurigny and other services are equivalent to £4,000 per islander. If Guernsey’s population were similarly indulged it would amount to a deficit of £250m.

Something has to give. And the likelihood is that the first casualty will be the direct route to the UK.

Quite whether Alderney will let that happen remains to be seen. It is not in a strong position to stump up millions in subsidies.

That the route’s best hope for survival lie with Economic Development does not bode well.