Waves looks for cash amid tax problems

Tuesday 24 July 2018

Waves has confirmed it is looking for new funding in order to start operating flights out of the Channel Islands again in September.

Representatives of the firm appeared in court in Guernsey at the end of last week over at outstanding tax bill, thought to be around £20,000, just a few weeks after confirming that all flight operations were suspended over the summer.

The Guernsey-based airline won over investors with promises of an Uber-style inter-island air taxi service between the islands, where bookings could be made via a mobile app. Some pledged money privately, while others invested in the cause through a crowdfunding site.

But  it emerged in June that the money raised via the online investment platform was eventually returned to the investors after the crowding funding company's 'due diligence' checks stalled following a Judicial Review into Waves’ business model, sparked by a complaint from competitor Blue Islands. 

It says the process was, "...expensive and damaging to the original business model, affecting momentum for Waves as well as investor funding and revenue." 

Guernsey's new Open Skies policy means Waves no longer needs the Guernsey to Jersey licence it fought so hard to eventually be awarded.

Pictured: New Waves CEO Gus Paterson is the former CI Director of Civil Aviation.

In a statement released to Express, founder Nick Magliocchetti said: “Waves is in the process of recapitalising the company. We are very excited about the arrival of our new CEO Gus Paterson and being operational again in September”

“Waves has generous, supportive and loyal investors who have been on this journey with the company and continue through this time as we regroup and refocus over the next few weeks.”

The company has only a fortnight to pay the outstanding tax debt to the States of Guernsey, which the firm says, "...is an historically adjourned issue which the company’s directors have been dealing with directly."

“Last week’s decision by the States of Guernsey to approve ‘open skies’ some-what proves that this year’s journey for the aviation start-up has been unnecessarily costly and damaging. It would appear that Waves serves as an example of the difficult decisions facing the Guernsey Transport Licencing Authority (TLA) during the cumbersome route licence application process, and certainly begs to differ that had the open skies policy been in place when Waves commenced commercial operations in October 2017, the journey would have been very different.”

Main picture: Waves founder, Nick Magliocchetti.