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Last Updated: Friday, 4 July, 2003, 09:56 GMT 10:56 UK
States 'could not prevent price war'
Le Cocqs aircraft
Le Cocqs hopes to start operating the route in September
The politician in charge of airline licensing in Jersey says there is nothing his committee can do if a price war develops between airlines.

Le Cocqs Airlink has been given permission to compete against Aurigny on the Jersey to Guernsey route.

And Deputy Gerald Voisin says it will be up to the airlines to make sure a price war does not ensue.

Le Cocqs will start taking passengers between the two largest Channel islands in September.

It's up to the two companies to be aware of the fares that they need to charge to be profitable
Deputy Gerald Voisin

"It is possible to have competition on a route without that competition resulting in such cut-throat fares that one of the businesses falls out of the market, and so we no longer see the benefits from competition," said Deputy Voisin.

But he says there not much he can do to prevent a price war.

"It's up to the two companies to be aware of the fares that they need to charge to be profitable."


SEE ALSO:
Row over islands' airlinks
01 Jul 03  |  Europe
States asked to buy airline
12 May 03  |  Europe
Passenger numbers show increase
12 May 03  |  Europe
Airport charges to be frozen
07 Mar 03  |  Europe


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