Rockhopper says competition will drive down fares

The move comes after Aurigny's decision to stop its services between Jersey, Alderney and Dinard in France.

Aurigny, which is owned by Guernsey's States, has been facing competition from Rockhopper on a number of routes.

The two airlines have clashed over Rockhopper's entry to the market, which Aurigny claims has done "nothing" to stimulate it.

'Constant review'

Malcolm Hart, Aurigny's managing director, said it would retain its core route between Jersey and Guernsey, but said some Channel Island routes could not support several operators.

"We are constantly reviewing everything we do and there is no chance of us coming off our main trunk route; it's what Aurigny has been about for the last 36 years.

"The introduction of competition has done nothing to stimulate the market and we've been weakened by it."

Aurigny's Jersey-Alderney and Jersey-Dinard services will cease on 4 October.

'Massively wrong'

Mr Hart has said his company had lost �560,000 since Rockhopper was given permission to compete on flights to Jersey.

But Rockhopper is challenging Aurigny to withdraw or correct the claims, saying the figure is 40% too high.

Rockhopper chief executive Noel Hayes, said: "I'm afraid Aurigny can't be allowed to get away with this.

"They unsuccessfully tried to persuade the States of Guernsey not to licence more competition on inter-island routes by giving them a figure for losses incurred because of competition, which is massively wrong.

"That must not be allowed to stand, because otherwise Aurigny's owners, the people of Guernsey, will be seriously misled."