Guernsey's Political Landscape: Concerns Over Aurigny's Wet Lease Costs and Financial Reliability
By John Fernandez, Guernsey Political Reporter
In a recent development, a former hotelier and politician, Deputy Simon Vermeulen, has raised significant concerns about the financial management of Guernsey's state-owned airline, Aurigny. The focus of his scrutiny is the airline's wet lease arrangements, a practice where one airline provides an aircraft, crew, and maintenance to another. This practice has come under the spotlight due to the current unavailability of several Aurigny planes, including one involved in a serious incident under investigation by the Air Accident Investigation Bureau (AAIB).
Vermeulen's inquiries are directed towards the States Trading Supervisory Board (STSB), seeking transparency and accountability. He questions the confidence politicians have in Aurigny's board and its financial stability. The deputy expresses particular concern over the costs associated with recent wet leases, emphasizing the need for taxpayer awareness, especially in light of the Goods and Sales Tax (GST) contributions.
The airline's financial troubles are not new. In 2024, a series of unforeseen events, dubbed 'black swan' incidents, resulted in a staggering £6.5 million loss. A significant portion of this loss can be attributed to the expenses incurred from wet leasing planes. Vermeulen's criticism extends to the reliability of ATR aircraft, which constitute the majority of Aurigny's fleet, following the sale of its sole Embraer jet in 2024.
He poses a critical question: "Where is the break-even point, or even profit, which has been hinted at for years but remains elusive?"
The deputy's concerns are further heightened by the anticipated tourist season, prompting the question: "Where are the planes and crews when they are needed the most?"
To address these concerns, Vermeulen has submitted a series of six questions to the STSB, aiming to ensure transparency and accountability on behalf of the taxpayers:
- Could the president of States Trading confirm the number of wet leases Aurigny utilized in 2025, the total costs incurred, and a comparison with 2024?
- What is the projected overall profit/loss figure for Aurigny in 2025, and how does it compare to the previous year?
- Why is Aurigny offering to fly routes operated by other airlines? Is it fair to expect Guernsey's taxpayers to cover these costs?
- Is there assurance that Aurigny's board is impartial and free from conflicts of interest with other airlines?
- Can the islanders be assured that States Trading is acting in the best interest of Aurigny's shareholders and maintaining the airline's operational capability?
- How can Aurigny's financial position be justified to the Guernsey taxpayers when discussions about its fiscal future suggest a potential burden on them?
The STSB has 15 days to respond to these inquiries. Additionally, Vermeulen has inquired about the progress of a new air policy framework within the Committee for Economic Development.
This development highlights the ongoing scrutiny of Aurigny's financial management and its impact on Guernsey's taxpayers. As the discussions unfold, the public awaits the responses from the relevant authorities, hoping for transparency and accountability in the management of this crucial public service.
