Guernsey’s new Heathrow link was secured after British Airways was given both financial support and incentive discounts.
The new once daily rotation was confirmed yesterday – with the lunchtime service starting in April.
BA will use Airbus A319 and Airbus A320neo aircraft on the route.
In response to questions from Express about how the new Heathrow link was secured, Deputy Sasha Kazantseva-Miller, the President of the Committee for Economic Development, gave few details.
“The multi-year incentive agreement includes capped financial support and route incentive discounts from the Committee for Economic Development and Guernsey Ports,” she said.
Deputy Kazantseva-Miller had previously said her committee had pursued the partnership with BA after being convinced of the “demonstrable demand for the (Heathrow) service” from bodies including the Guernsey International Business Association, the Guernsey Hospitality Association, and other members of the G8 which each highlighted the potential benefits for both business and tourism.
BA’s Chief Planning and Strategy Officer, Neil Chernoff also said the route will benefit business and leisure travellers.
“The addition of Guernsey is something we know our customers have been eagerly awaiting,” he said. “As the only direct service between Heathrow and Guernsey, the route will offer conveniently timed connections to more than 20 European destinations, providing greater choice and flexibility for both leisure and business travellers alike.”
Meanwhile, Aurigny has “reaffirmed its ongoing commitment to serve the London market” in the face of the impending competition from BA.
Despite seat capacity on flights between Guernsey and London increasing by up to 30% when the BA Heathrow route starts in April, Aurigny’s Chairman said it will maintain “convenient and frequent services on the lifeline route to/from London Gatwick and on the popular route to/from London City” under its States mandate to “protect the Bailiwick’s core air routes, and to do so in a financially responsible manner that limits the burden on taxpayers”.
Kevin George also said that Aurigny’s Gatwick and City services offer “stability and sustainability”.
“Thanks to Aurigny’s own strategic initiative and working within the agreed Air Policy Framework, Guernsey has a greater frequency of air service to the London market than any other financial centre or capital city in the world on a per capita basis,” said Mr George. “We already provide great opportunities to connect via London through agreements with Emirates and British Airways, as well as alternative hub connectivity through Paris and Dublin.
“The rapid increase in capacity into a market, or withdrawal as we have recently witnessed in Guernsey’s fellow Channel Island, has an unquestionable impact on travellers, airlines and the broader community. While some changes represent opportunity, there are also material risks involved.
“The challenge with adding air connectivity into an already-served market is to do so without taking away from what is already in place. Stability and sustainability of air connectivity are critical for us all, and we will continue to work with all stakeholders as we seek to balance the risk/reward equation of what is proving to be a fast-changing local aviation market.
“Our obligation is to highlight the likely implications to all our stakeholders and to take mitigating action to lessen the impacts on our business. In the coming weeks, we will seek to work with our shareholder on the effect that today’s announcement may have on our primary shareholder objective of protecting Guernsey’s London connectivity. And, of course, we will focus on managing the immediate financial impact on our business.
“Above all, we will continue to pursue the aspiration of being the Islanders’ natural airline of choice to and from London, and beyond. Aurigny will always be the airline that connects islanders to the rest of the world, and brings them home.”
The London Gatwick and London City routes are the largest part of Aurigny’s operations, with up to nine flights per day to the England capital.
Mr George said capacity on Aurigny’s London services “has been built up incrementally and with great care” as part of the airline’s strategy aimed at maximising the economy and enabling vital links, while aiming to be financially viable well into the future.
While the level of financial support and the route incentive discounts given to BA by the Economic Development committee haven’t been specified, Aurigny’s financial position is well documented.
In 2024, the States owned airline recorded a £6million loss having posted a profit of £1.7m.
That came off the back of a turbulent year for the airline marked by frequent cancellations and delays.
Aurigny’s past debts were written off by the States in 2021 and 2015, with the airline recapitalised to the tune of around £46.8m and £25m respectively.
Previously, subsidies have also been given to other airlines with Flybe the last to receive money from the States to run a commercial service to and from Guernsey.
It operated a Heathrow service in 2019, backed by an £800,000 subsidy from the States.