 Rockhopper has announced a set fare of �49 return to Guernsey |
Airlines in the Channel Island have been warned not to cut their fares so much they risk going bankrupt. The President of Economic Development in Jersey, Deputy Gerald Voisin, said that while an air price war could be good for customers in the short term, companies must not risk losing out on profits altogether.
The competition between three different airlines to attract customers wanting to fly between Jersey and Guernsey is growing more fierce.
Since the Economic Development Committee announced its "open skies" policy, Flybe and Rockhopper have joined Aurigny, now owned by Guernsey's States, on the route between the two islands.
'Air war'
Rockhopper, formerly Le Cocqs, announced on Monday a set fare of �49 for a return ticket to Guernsey, and the giveaway of 100 free tickets.
It described the move as the beginning of an "air war".
But Deputy Voisin urged caution from the airlines.
"It doesn't actually do the interests of the consumer any good if the prices come down for a short time, only to go back up again to the same level as before or even higher, if the competition fails in terms of one competitor going bankrupt."
Aurigny recently objected to Flybe starting to operate between the two islands.
It argued it was already facing competition from the ferry service.
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