Aurigny loses sense of direction
THE Aurigny saga rumbles on, with now both the airline’s operational management and political oversight in the crosshairs of angsty politicians.
As its shareholder openly considers the concept of an explicit subsidy for the airport to enable it to break even, does that raise the question as to whether the shareholder objectives set for Aurigny are the right ones?
When the airline was recapitalised (again) in 2021, it was told to secure essential routes, then be cost-efficient to break-even point, and then to support the States’ core strategic objectives.
If that had been achieved with an agreed ‘subsidy’ in the region of £3-5m. a year, adding up to a similar 20-year support package of £88m., rather than a series of unstructured bail-outs, with the kind of positive service we used to appreciate, would the community be happier? Would this spring's issues have happened if the airline wasn’t busting a propeller to break even?
Who could have foreseen that almost exactly a year ago, the president of the STSB was telling colleagues that the airline was on track to produce better financials than achieved in 2022, with a ‘significant increase’ in connectivity, record levels of turnover, increased productivity, and the best punctuality of any UK-based carrier.
That feels like a long time ago. But is Aurigny now unlucky, ill-advised, or hidebound by poor or misguided direction from its shareholder?