Originally Posted by
GCILover
I always use the blue islands service to SOU and 9 times out of 10 it is full. Why would this be losing money and Aurigny be breaking even when I can probably count the amount of times I have watched the Aurigny one board or disembark with more than 20 pax on it. Price wise there is very little difference
I read with interest the comments on the situation between these companies. Having worked in the aviation industry for over 25years (4 of them at Blues Islands) I feel that there are a couple of things being over looked. The focus of these 2 airlines is totally different.
Blue islands are like any other airline they try to make money for their shareholders, they are not a big company and cannot afford to invest in new aircraft all the time which is why they lease them. As the market from Jersey is very small with some big players like Easyjet, Flybe and BA to name a few they need to pick their routes very carefully which is why you see them operate for a while and then maybe drop them if they are not profitable enough. The franchise deal with Flybe also means they have no requirements to maintain their own website or booking engine and eases they advertising budget as they piggy back on Flybe’s. They are basically there to serve the share holders of the company. Yes their flights are normally almost full on the GCI – SOU route but anyone can fill a plane if the fare are rock bottom low.
Aurigny on the other hand are there to serve the Islands of Guernsey, and Alderney and more recently Jersey. Their shareholders are the States of Guernsey who I guess would be more than happy if they just broke even. The focus of Aurigny is to maintain good air links to the Island which is why they are investing in new aircraft as the routes will be here for many years to come.
I had a quick play with their price structure on the GCI-SOU route Blue Islands start very low about £12 one way but as the plane fills up can get to over £100. Aurigny on the other hand start a bit lower around the £26 but never really go much above £80. I guess they average out about the same.
As for the sale of Blue Islands as we know Derek Coates is fairly ill and doesn’t have much to do with any of his businesses any more so should be no surprise really that he’s looking to sell up. His hotels were on the market a few years ago and probably still are and with the constant decline in the airline industry selling now seems a good move.