Guernsey's political landscape is abuzz with concerns raised by Deputy Simon Vermeulen regarding the financial implications of Aurigny's wet lease arrangements. Vermeulen, a former hotelier and politician, has voiced his worries about the costs associated with the airline's wet lease agreements, particularly in light of recent events that have placed a strain on its operations.
A wet lease in aviation is a unique arrangement where one airline provides an aircraft, crew, and maintenance to another, offering flexibility and operational support. However, the current situation at Aurigny has sparked a debate about the financial sustainability of such agreements. With several of Aurigny's planes out of action, including one involved in a serious incident under investigation by the Air Accident Investigation Bureau (AAIB), the airline's operations have been disrupted.
Vermeulen's concerns are twofold. Firstly, he questions the confidence politicians have in Aurigny's board and its financial management. He emphasizes the importance of transparency, especially when taxpayer funds are involved, stating, 'We can't afford to run businesses badly on the island.' The deputy's interview with the BBC highlights the need for taxpayers to be aware of the costs associated with wet leases, particularly the Goods and Sales Tax (GST) they contribute.
Secondly, Vermeulen criticizes the reliability of ATR aircraft, which form the majority of Aurigny's fleet. The sale of its only Embraer jet in 2024 further raised questions about the airline's operational strategy. He inquires about the break-even point and the elusive profit that has been hinted at over the years but never materialized. Vermeulen's concerns extend to the upcoming tourist season, where the availability of planes and crews is crucial, prompting him to ask, 'Where are the planes? Where are the crews?'
To address these concerns, Vermeulen has submitted a series of six questions to the States Trading Supervisory Board (STSB), which oversees Aurigny on behalf of taxpayers. These questions delve into the number of wet leases in 2025, the associated costs, and their comparison to 2024. He also seeks information on Aurigny's anticipated profit/loss figure for 2025 and its comparison to the previous year. Additionally, Vermeulen questions the fairness of expecting Guernsey's taxpayers to cover costs related to flying another airline's routes. He also seeks assurance regarding the impartiality of Aurigny's board and their alignment with the best interests of the shareholder. Finally, he inquires about justifying Aurigny's financial position to the taxpayers when discussions revolve around its fiscal future becoming a burden on them.
The STSB has 15 clear days to respond to these questions, and Vermeulen has also sought updates from the Committee for Economic Development on the progress of a new air policy framework. This situation not only highlights the challenges faced by Aurigny but also invites a broader discussion about the financial responsibilities and expectations surrounding the airline's operations.
