 The airline is cutting 19 jobs |
Guernsey's Commerce and Employment Department is in talks with its Jersey equivalent about creating a joint airline licensing authority. The department believes that may be the best way to resolve what it sees as a conflict of interest.
The States regulates all airlines which operate in the Bailiwick, but it also owns the airline Aurigny.
Commerce Minister Stuart Falla said he believed the best way to reconcile the conflict was to encourage competition.
Last week, Aurigny announced it was suspending all its services between Jersey and the UK from 10 January, as well as services from Guernsey to Bournemouth and Guernsey to East Midlands. Nineteen jobs are also being lost.
Noel Hayes, chief executive of Aurigny's main competitor, Rockhopper, welcomes the formation of a joint licensing authority.
Mr Hayes says competition has benefited passengers, but he believes the licensing system is the key to the health of the industry in the Channel Islands.
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