Guernsey discusses EasyJet Luton route; Aurigny warns of £10M impact

Guernsey's Economic Development Committee (EDC) has confirmed confidential discussions with low-cost carrier EasyJet and regional airline Loganair regarding enhanced air connectivity for the island. These talks specifically address persistent rumors of EasyJet potentially establishing a new route to London Luton Airport, a key operational base for the British airline. Deputy Sasha Kazantseva-Miller, president of the EDC, stated that such conversations are a natural part of developing a new air policy framework for Guernsey.

The prospect of new subsidized routes, particularly to Luton, has drawn strong warnings from Aurigny, Guernsey's state-owned airline. Aurigny CEO Nico Bezuidenhout cautioned that if the States of Guernsey were to subsidize a Luton service in addition to the already considered Heathrow route, the cumulative negative financial impact on Aurigny could reach approximately £10 million. Bezuidenhout previously estimated a £4-5 million impact from a subsidized Heathrow service alone, assuming a 30% annual capacity increase, which he described as a "fairly conservative financial implication" that would "destabilize the market materially."

Bezuidenhout further highlighted that additional subsidies would create significant uncertainty for Aurigny, which has already sold tickets for services extending through next October. He indicated that the airline would need to engage with its shareholder regarding its mandate under such competitive pressures. EasyJet, which operates over 927 routes across more than 34 countries and reported headline profits climbing to £602 million last year, has its operational headquarters conveniently located at Luton.