There is a vision which informs a clear policy and that is being implemented

The policy letter takes account of the fact that Guernsey’s air links cater for three different types of passenger; residents and their visitors, business travellers and leisure tourists. The policy letter considered how best to balance the requirements of each type of traveller in respect of the affordability, connectivity and reliability of Guernsey’s air links, making it clear that in delivering the air links policy, one single investment will not deliver what is required by all user groups.

Paragraph 4.12 of the policy letter sets out the steps that need to be taken to enhance our air links to meet the needs of the three different types of travel and to act as an effective economic enabler. These are:

n Encourage development of regional (UK and Europe) connectivity through a deregulated ‘quasi-open skies’ approach;

n Maintain the security of the connection to Gatwick Airport;

n Secure a connection to a major international hub such as Heathrow Airport;

n Secure connectivity to Alderney through the operation of a public service obligation;

n Attract carriers with proven international connectivity;

n Broaden UK and European connectivity through scheduled and charter services; and

n Access for Bailiwick residents to specialist health care and emergency evacuation services.

ED and indeed the States has made significant progress against these. For example:

l Deregulation – agreed by the States of Deliberation in response to a Committee for Economic Development policy letter in summer 2018 – has enabled greater connectivity and more routes to and from Guernsey;

l As directed by the States, a link to Heathrow Airport has been put in place to give greater choice for travellers to and from the island – a link supported by the island’s businesses and employers as being good for business;

l The public service obligation tender process is about to conclude after two phases of market testing and during November ED will make a recommendation to the Policy & Resources Committee.

So not only is there is a vision which informs a clear policy, but that policy is being implemented decisively.

ED is supportive of Aurigny – as an island brand, as an economic enabler, and as an important local employer. However, the scale of the losses, and the apparent sudden increase in the losses, does concern ED as it does other States members, and it fully supports this being actively investigated by P&R’s planned review.

The policy of providing route development support through the Future Guernsey Economic Fund was supported in P&R’s April 2019 policy letter on strategic air and sea links. The only route that receives route development support from the States is the Guernsey to Heathrow Airport route. The States also provides, as standard practice, route development support for new routes through the airport’s landing charge and passenger charge discount scheme.

The positive impact of the London Heathrow route on the island’s economy cannot yet be measured definitively in terms of GVA or tax take. However this is an extract from what the Institute of Directors, the Chamber of Commerce and the Guernsey International Business Association issued publicly in summer:

‘The improved connectivity and growing traffic numbers [due to the Heathrow link] are supporting an improvement in sentiment amongst the business community as well as providing meaningful social benefits to islanders. The success of the London Heathrow service shows the potential of route development support to improve connectivity, grow passenger traffic and aid economic activity... The impact being delivered in the first seven months of the Heathrow service with £0.825m. of funding support needs to be looked at in the context of the £31.73m. allocated to Aurigny since 2016 and in addition to the $60m. guarantee provided by the States of Guernsey to Aurigny to facilitate the renewal of the ATR fleet, along with the open skies/route development strategy being employed by the Committee for Economic Development.’

So for absolute clarity, the States has followed a policy of strengthening Guernsey’s air connectivity by a series of steps which include:

1. Supporting the establishment of a Heathrow link (December 2018);

2. Agreeing to use route development support to put it in place (December 2018);

3. Agreeing the amount of route development support (March/September 2019); and

4. Agreeing that route development support is a positive, expedient and financially focused approach to enhancing Guernsey’s connectivity (April 2019 P&R policy letter).

This policy has been set out in public and implemented over the past 18 months. It reflects an assessment of our business and community needs. Aurigny’s role is critical in delivering this, but it can only do so if its board adapts its business strategy to deliver this policy.

DEPUTY PARKINSON

President, Committee for Economic Development.