Deputy concerned about Aurigny wet lease costs

A former hotelier and politician has asked a series of questions about the cost of arrangements by Guernsey States-owned airline Aurigny to wet-lease planes.

A wet lease in aviation is an agreement where one airline provides an aircraft, crew and maintenance to another.

Deputy Simon Vermeulen has asked the States Trading Supervisory Board (STSB) about politicians' confidence in the airline's board, its financial position and said he was "concerned" about the costs of recent wet leases.

Aurigny's chief commercial officer Phillip Saunders said wet-lease utilisation was down by at least 75% in 2025, compared to 2024.

Vermeulen's questions also touch on whether the company made a profit last year after the airline's CEO Nico Bizuidenhout said he expected the company to break even in 2025.

In an interview with the BBC, Vermeulen said taxpayers "had to know" about the costs of wet leases, "especially when we're asking taxpayers to pay a GST [goods and sales tax]".

"We can't afford to run businesses badly on the island," he said.

In 2024, a series of what the company called "black swan" events, led to the airline losing £6.5m.

Much of the losses came from the costs of wet-leasing planes.

Vermeulen criticised the reliability of ATR aircraft, which make up the majority of Aurigny's fleet, after it sold its only Embraer jet in 2024.

"Where's the break-even position, or even - dare I say it - profit, which has been alluded to over many years but which we never see?" he asked.

He expressed concerns about the lack of available Aurigny aircraft in the coming months.

Vermeulen asked: "We've got the tourist season coming on. Where are the planes? Where are the crews?"

The deputy has submitted six questions to STSB, which oversees Aurigny on behalf of taxpayers:

• Could the president of States Trading confirm how many wet leases were used by Aurigny in 2025, what was the total cost of these and how did it compare to 2024?
• What is the anticipated overall profit/loss figure for Aurigny in 2025? And how does this compare to 2024?
• Why is Aurigny offering to fly another airline's route? Is it fair to expect Guernsey's taxpayer to cover these costs?
• Is there full confidence that Aurigny's board is impartial and not conflicted with other airlines?
• Can there be assurances to islanders that States Trading is working in the best interest of the shareholder of Aurigny and keeping the airline to account to perform as operationally capable as it can?
• How can Aurigny's financial position be justified to the taxpayers of Guernsey when there are discussions on its fiscal future becoming a burden on them?

STSB has 15 "clear days" to respond to the questions.

Vermeulen has also asked the Committee for Economic Development about progress on a new air policy framework.

Saunders said it was "ludicrous" to believe Aurigny was the only airline to wet-lease.

"It's a perfectly normal procedure in an airline when you may have some pressure on your fleet," he added.

He did not confirm the amount Aurigny had spent to wet-lease planes.

A number of Aurigny's planes are currently out of action, including one after a "serious incident" now being investigated by the Air Accident Investigation Branch (AAIB).

However, Saunders said the plane involved in last week's incident was due to return to service on Thursday.

Saunders said Aurigny's fleet was "ideal" for inter-island to main land flying.

"The ATR 72-600 is first of all a very efficient aircraft," he said.

"It's actually pretty reliable. It's also the right size for the operations that we're flying."

He said the the Embraer was a jet-engine aircraft which was expensive on fuel.

"We have the right fleet," he said.

"Occasionally, we will have technical issues."

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