Alderney air fares rise as States cuts costs

Alderney air fares will immediately rise and increase again in 2025 as the government attempts to reduce taxpayer spending on flights to the island.

The Public Service Obligation (PSO) subsidy on flights to the island is set at £2m for 2024, but Guernsey's Policy and Resources (P&R) committee said it could be over budget by £600,000.

P&R applied an immediate £5 increase on fares to tackle the overspend and a reduction in the subsidy to £1.5m in 2025 to cut costs, which it estimated could add £25-£30 to one-way fares.

The States of Alderney said the change would cause "consternation among the people of Alderney and harm the bailiwick economy".

P&R said the increase next year should be applied primarily to the Alderney-Southampton route to help protect the Alderney-Guernsey route.

The committee added airline Aurigny was consulted about the changes.

Minister for External Relations Deputy Jonathan Le Tocq said he understood Alderney residents would be disappointed.

"It's important that we strike the right balance between the cost of the subsidy on the taxpayer and the cost for those using the service," he said

"For 2024 this balance was outlined in the contract, with the target of a £2m subsidy, however, with this having increased by £600,000, it's only right that we now take action to bring this back in line with the original target.

"We are all aware of the financial challenges facing our bailiwick, and as such we have a responsibility to pursue future savings, as directed by the States.

"A reduction in subsidy of £500,000 is, we believe, appropriate and proportionate given the circumstances."

The States of Alderney said the increase would push up Alderney–Southampton return air fares by about £90, taking the cost of flexible return flights close to £450.

Alderney Policy and Finance chairman Nigel Vooght said: "We are extremely disappointed at the serious lack of engagement prior to being informed of this decision.

"We are disappointed that this announcement has been made without prior discussion, constructive collaboration or due assessment of the impact it is likely to have on our economy which is already constrained by high air fares and disrupted connectivity.

"If our economy suffers further as a result of this reduction, so does the bailiwick’s as the taxes we pay to Guernsey will decline."

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