From
www.thisisguernsey.co.uk
Rockhopper wants to take over Aurigny
by Nick Mann
HEALTHSPAN, the major investor in local airline Rockhopper, is in the running for rival Aurigny.
But the troubled States-owned airline’s own management would not consider a buyout.
Other industry sources were yesterday tight-lipped about any possible involvement.
Treasury and Resources has asked parties, including established airlines, whether they are interested in taking over all or part of the business.
The States has been advised that slots at Gatwick, the driving force behind the purchase of Aurigny in May 2003, are guaranteed without having to operate an airline.
‘Healthspan is our major external investor and it has been approached by the States of Guernsey – we’re now considering our next step,’ said Rockhopper chief executive Noel Hayes.
‘Together we have the local knowledge, staff, infrastructure and commitment to really deliver for islanders.’
Mr Hayes said that if left as the only operator on any route, the airline would be prepared to put in a service level agreement, guaranteeing fares and frequency.
‘We’re island-owned and island-based businesses and we will be focused on providing our customers with the right service and the right price,’ he added.
‘That may best be done by getting involved in any sale of Aurigny or simply just continuing with our own very successful formula.’
He put Aurigny’s problems down to overexpansion, rather than competition from his airline on the Alderney-Guernsey route.
In the last two years Aurigny had opened and then either closed or reduced capacity on Guernsey to Bournemouth, East Midlands and Bristol, he said.
The same had happened with Jersey to Manchester, Stansted, Bournemouth and Bristol.
‘In doing so they have neglected their core business of giving local people a good service at the right price on local routes.’
Both Flybe and CI Traders, which have also been linked with Aurigny, declined to comment.
Aurigny managing director Malcolm Hart believed the review of the ownership structure reflected best management practice.
‘I would not consider a management buyout of Aurigny,’ he said.
‘I see no way that could produce the 25% rates of return that venture capitalists need to launch a management buyout.’
He added that this was true of any airline operating in today’s climate and was unable to predict what any future structure of Aurigny might be.
The airline’s staff were informed of the development in the company’s monthly newsletter, issued yesterday.
‘I have confidence that when the States is asked to make a decision about future ownership of Aurigny, it will take the decision with the best interests of the company’s staff and their well-being in mind.’
Mr Hart added that the invitation for expressions of interest in Aurigny and the associated Anglo Normandy Aero Engineering were provided for in the May 2003 policy letter when the States bought them.
‘That decision was taken, the slots were saved and the consolidation process is now complete.
‘The States will now weigh up the benefits of continued public ownership against possible private sector alternatives.’
Published 22/12/2004