Aurigny to replace oldest aircraft

Aurigny is planning to replace its oldest ATR aircraft in its fleet.

This comes as the plane's lease expires in March 2014.

The States-owned airline has three ATRs in total and bought two of those after the States agreed the company could borrow $37m in 2007.

The other two planes, 'Vazon' and 'Cobo' are still going strong.

Asked whether Aurigny planned to buy an ATR 72-600, chief executive Malcolm Hart said the company was looking at a number of possible options and the process was far from complete.

"Once it has run its course we will be making our recommendations to Treasury and Resources as the representative of our shareholder, the States of Guernsey."

The States provided guarantees so Aurigny could borrow money from the Royal Bank of Scotland International to buy its last two ATRs. In September 2012, £15.1m was still outstanding.

The Aurigny group made a loss in 2011 and the forecast for 2012 is higher at £1.36m