 Aurigny says off-peak services may have to be cut |
Guernsey's States-owned airline Aurigny says the introduction of competition on its routes is damaging its business. The company says granting a licence to its rival, Alderney-based Rockhopper, to fly between the two islands will cost it up to �240,000 a year.
Rockhopper runs passenger services from Jersey to Guernsey and Alderney. It is planning two flights daily between Alderney and Guernsey from 4 October.
It says competition is good for customers and will drive prices down.
Services threat
Aurigny says Rockhopper is "cherry-picking" the most profitable journeys and it will now have to reconsider whether to continue to provide off-peak services.
Managing director Malcolm Hart said: "We are very disappointed and extremely concerned by the continual erosion of our core businesses through the licensing of competition on routes that are unable to support multiple operators.
"Financial realities are such that Aurigny must now look very closely at which routes are likely to remain commercially viable. Indeed, this review process is already under way."
Rockhopper claims the move will stop a decline in the number of people travelling between the islands, adding the competition will lower fares.