After a challenging start to the year for air travel, Economic Development says it is prioritising work on improving the reliability, connectivity, and affordability of airlines serving Guernsey while STSB says keeping Aurigny in public ownership remains justified.
In response to questions posed by Deputy Simon Vermeulen, the Committee for Economic Development said it is not responsible for Aurigny – which is currently operating all scheduled commercial flights in and out of Guernsey and Alderney – but it is “in close contact with all airline operators”.
ED said it is “fully aware that the early weeks of this year have been particularly challenging for Aurigny” and that “the resulting disruption is regrettable and understandably frustrating for passengers”.
While ED is responsible for growing the economy – and air travel is a vital component of that – the committee is not responsible for the States-owned airline or the issuing of licences for flying on the Bailiwick’s lifeline routes.
Despite that, ED said it is committed to undertaking a review of the Air Transport Licensing Policy Statement and to supporting a wider review of the Air Policy Framework.
“This work will seek to establish a framework for the independent evaluation of the reliability, connectivity, and affordability of airlines serving Guernsey,” said ED. “This workstream continues to be a priority for the Committee and will be progressed throughout 2026.”
Further questions posed by Deputy Vermeulen, aimed at the States Trading Supervisory Board which represents the States as shareholder of Aurigny, confirmed that political confidence remains high in ‘Guernsey’s airline’, in some quarters.
STSB said it “expects Aurigny’s Board to comply fully with its legal duties, including to act in the best interests of the company and to declare and manage any potential conflicts, for example where individuals may have past or present links with other airlines”.
STSB added that it believes this is already being done.
“No evidence has been presented to the STSB that Aurigny’s Board is acting other than impartially in Aurigny’s interests; if such evidence ever emerged, it would be addressed through established governance mechanisms rather than through public comment.”
Deputy Vermeulen had asked questions around how much money Aurigny had made or lost last year, which STSB said is not yet known as the figures haven’t been finalised.
The Board said it is not holding a “blank cheque” open for the airline though.
“Aurigny’s recent financial results, including the 2024 loss of about £6.5 million, are not satisfactory and are not being presented as such,” said a spokesperson for STSB. “A significant element of that loss reflects industry-wide pressures, exceptional wet-lease and fleet-transition costs, rather than the underlying economics of core routes, but it remains taxpayers’ capital at risk and must be treated seriously.
“The justification for continued ownership is that, as a small island jurisdiction, Guernsey requires reliable air connectivity for its economy, public services and community life, and the market has repeatedly shown that purely private provision does not always guarantee that on acceptable terms, and certainly not free of public subsidy, as the subsidy for the new Heathrow connection demonstrates.
“The shareholder’s responsibility is therefore two-fold: to insist on improvements in Aurigny’s efficiency and financial performance so it does not become a recurring burden; and, to ensure that any support provided is transparently accounted for within the wider debate about the States’ fiscal position. Ownership is not and should not become a blank cheque; it requires active stewardship of a strategic asset on behalf of taxpayers, rather than treating our airline as a sacred cow.”
Deputy Vermeulen also asked if STSB has “full confidence” in the airline, and if it can assure tax payers that the Board is working in our best interests to hold Aurigny to account.
“The STSB acts as the shareholder for Aurigny; it does not run the airline,” replied a spokesperson for STSB. “Its role is to set clear strategic expectations, appoint an effective Board, and hold that Board to account for the company’s operational and financial performance. This includes scrutinising business plans,challenging management on reliability and customer service, and ensuring that the airline is managed in a way that balances connectivity, commercial discipline and the taxpayer’s exposure.
“Islanders can therefore be assured that the STSB is engaged, as an active shareholder, in securing an airline that is as operationally capable, efficient and financially sustainable as it can be, rather than second-guessing individual timetables or operational decisions. The makeup of the STSB is such that it has a very significant concentration of highly qualified and experienced accounting, business, governance and legal expertise to deal with its governance obligations.”