Owning Aurigny not States’ business, says Treasury chief

TREASURY minister Charles Parkinson does not believe the States should own Aurigny.
The department acts as 100% shareholder in the airline, which now requires £6m. of public money to recapitalise it.
Treasury appears divided on the concept of owning the airline but there are no immediate plans to sell it.
‘I don’t think we should own Aurigny because I don’t think it’s a core public service and our ownership of the airline compromises our position dealing with other airlines and the licensing position,’ said Deputy Parkinson.
The States bought Cabernet Ltd, the parent company of Aurigny and Anglo Normandy Aeroengineering, in 2003 to secure runway slots at Gatwick. That decision was reconfirmed in 2005.
The £6m. would allow the company to repay its existing short-term borrowing facilities, which are guaranteed by the States.
Cabernet has commissioned an independent review to analyse profitability and cash flow forecasts and review its efficiency.
This report will form the basis of a Treasury States report on the strategic direction and funding of Cabernet. (from thisisguernsey)

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