davidjohnson6 and Jerbourg, the abbreviated GP article doesn't explain what's going on very well. In order to formalise the subsidy which Aurigny has received from its owners, the States of Guernsey, in the form of the servicing/writing off of debts etc. for many years, there is a(n incredibly slow-moving) process ongoing to put the Alderney routes, which require much of this subsidy, out to tender under a PSO. Mark Darby has suggested that Aurigny will compete for this tender, but in order to run the process properly and as any more than a pen-pushing exercise, there needs to be several bidders. It makes sense that another airline which has expressed interest in operating the Alderney routes should be entitled to bid for the tender.
Air Alderney's bid can then be assessed on its merits, according to the suitability of its equipment, security of its financial backing etc., whilst Aurigny's will no doubt be judged to some degree in light of the fact that the States has already let it spend £15m of taxpayers' money on aircraft to operate the Alderney routes. (In other words, the various pros and cons will be assessed at this stage. An 'soft marketing' approach to engage in a tendering process is not a fait accompli.)
Many islanders still hold Aurigny in very high esteem, but much of the recent animosity has (in Guernsey) been created by its monopoly position on the lifeline Gatwick route, which leaves it solely responsible when fares seem high or seats in short supply, and (in Alderney) by the programme to replace the Trislander, which has taken longer and been more costly than planned - with some consequences for the reliability of Alderney services - due to a lack of suitable used 228s. A smörgåsbord of other objections have included complaints over a lack of head room, the aircraft steps, alleged damage to the runway in Alderney, fares, lack of seats, etc. etc. Some very well-founded indeed, some more out of a general aversion to change which will and has always characterised small island communities. (There was a rather a stink in Alderney when the Trislanders were introduced in 1971; residents said they were too big and noisier than the Islanders they came to replace.) A brief scroll through this thread from early 2014 will give you a decent synopsis.