Derek Coates says there's "no chance" of Blue Islands cutting Alderney's direct link to the UK.
Healthspan boss Mr Coates was speaking ahead of a possible takeover of Aurigny, which currently operates services between the island and Southampton.
In a revealing interview, Mr Coates said job losses were inevitable should the merger take place. He also declared Trislander planes could be finished within three years.
When asked about the ramifications any takeover would have for Alderney, Mr Coates said: "It will provide the same secure links as before - direct links to Guernsey and direct links to Southampton. We will ensure the services continue and are as good as they ever were.
"The only reason Blue Islands is not flying from Alderney to Southampton at the moment is because the States of Alderney refused our application to fly in competition with Aurigny.
"There's no chance of Alderney's UK link ending and in the long run I'd like to see prices on that route come down."
Mr Coates went on to say there would be job losses should Blue Islands take over the Guernsey States-owned airline later this year. Aurigny currently employs 27 people in Alderney, including pilots, handling and reservations staff.
"I would be dishonest if I said there won't be job losses. When you put two airlines together you cannot have two managing directors and two chief executives.
"When it comes to deciding which people to keep we will not favour blue or yellow. We will take the best people to produce the best airline.
"There will certainly be some losses to handling in Alderney, as Blue Islands employs four people and Aurigny has eight. Some people may retire but we will talk through the process with everybody. At the moment I am seeking to maintain reservations and operations in Alderney."
The Trislander aircraft may also not be around for long, according to Mr Coates.
"We all love Trislanders but the sad news is they're the OAPs of the sky and have a limited life. By 2017 there will be no avgas and avgas is what Trislanders use. They are also only allowed to land and take off 39,000 times and once they've done that they're finished, no questions asked.
"If you think Trislanders will last another ten years, you're on a wing and a prayer. They might have eight years left; they might only have three. You could buy a Twin Otter, but they cost $4m; Trislanders cost £150,000. Buying an Otter would put up fares. There are a whole series of issues to be debated with the States of Alderney and States of Guernsey. One thing I do know is that Trislanders have no more than a decade left."
As for fares, Mr Coates said Blue Islands would look to offer a fair and average price to Guernsey and attempt to reduce the cost of flying to the UK.
"Competition has been very fierce. Aurigny has gone up to £45 between Alderney and Guernsey and as low as £25. I have a feeling we'll be looking at £35 - so there won't be any major shocks. We will look for a fare that's profitable but at the same time doesn't discourage industry and tourism. It will be fair, honest pricing.
"As for Southampton, I'd like to think we could reduce the cost of flying there by increasing demand on the route."
Mr Coates said Blue Islands would do everything it could to promote tourism in Alderney.
"I think we can boost tourism and my God it needs it. This is the quietest year ever in Alderney. I suspect it hasn't been good for any business.
"Somebody has got to put Alderney on the map and that's one of my intentions. Look what an amazing island it is. It's one of the most beautiful places in the world - it's the jewel of the Bailiwick. Guernsey Tourism has done very little to promote Alderney historically - there's been a poor job done and somebody's got to change that. We need to make sure Alderney's on people's holiday agenda - right now it's not.
"I love Alderney. I'm going to live there one day and don't want to upset people to the point I can't go to the pub. I also have a hotel there, so I want tourism in Alderney to be successful."
Mr Coates finished the interview by saying Aurigny's iconic Joey plane would remain in service.
"Joey will carry on. She may have to change from her yellow wedding dress into a new blue dress, but she'll still have a smiling face."
21 comments on this article
Create a unique icon for your replies at gravatar.com
Joe Public | Tue 3rd August 2010 kat i'm afraid you're wrong there. britten-norman would adapt their trislanders to present EU/CAA rules and they're not finished. they'd be completely new build and compliant with modern environmental/noise/safety rules so don't know where you're sourcing those extremely strange ideas??? i think ed was referring to AirX under its various guises of blue islands/rockhopper/le cocqs airlink.
Create a unique icon for your replies at gravatar.com
Kat | Sat 31st July 2010 Have you any concept what-so-ever of how much time and money is required for an airline to set up a new route?? If a private airline then 'cuts' this route, there can be only one reason. Bums in seats. If Joe Public decide, for whatever reason, not to travel, the airline will shut it. End of story. At least BI have tried new routes. 14 as quoted below is very harsh, but at least they tried. And regarding this nonsense of new Tri's, they are finished. New laws within the next couple of years will end single pilot operations. The Tri's are already 40 years old and very expensive to maintain.
Create a unique icon for your replies at gravatar.com
dippy | Mon 26th July 2010 Ed please remember that Blue Islands has only existed since 2006, before that the airline was known as Rockhopper and run by the Le Cocqs stores guy, anything prior to 2006 has nothing to do with Mr Coats. Also 14 routes that Blue Islands/Rockhopper has cut, is not quite true either, for a start Oxford never operated and the likes of St. Brieuc, Paris Beauvais and Jsy/Gsy to Bournemouth were triangular routes in other words shared by Guernsey and Jersey. Paris was cut due to Flybe launching their states subsidised Charles de Gaulle which only lasted the summer months of 2008, Gsy/Jsy-Bournemouth was cut due to their expansion into Southampton, and St. Brieuc due to the high competition from the Ferry companies. What I would say is that the high number of routes that they have operated surely shows that they are willing to try new routes and then proved that some of them simply weren't sustainable, it was great having those routes but if no one uses them, they're not going to last, so only us the travelling public are to blame.
I totally agree that the protection of links into London/Southampon are a priority, now until full details are released about the proposed merger, many of us will speculate that it is doomed to fail, but lets be open minded here, there is a possibility that we could be saving local employment and saving a Channel Island airline, there also nothing to say that indeed it will be doomed and fail, but as the saying goes innocent until proven guilty, if this deal is not secure or the best idea then the States will say a simple resounding no and this will have been a silly idea. Or not as the case maybe, lets wait until clearer proposals and plans have been released before any of us pass judgement. I am not for or against at the moment I just think we have to open our minds a little and see whats actually put down on the table before we start scathing attacks against each other
Create a unique icon for your replies at gravatar.com
Ed | Fri 23rd July 2010 Pinky - firstly let me reassure you that I know the person behind the Facebook page and they are entirely unassociated with both Aurigny and the Belle Vue. So ignore that and stop trying to find the easy way out of an argument that you are so clearly loosing.
The reason people so HATE this merger deal is that Blue Islands has, since it started in 2001, cut 14 routes over its network. From what I can see this has already been pointed out to you, so please take it on board.
This rate of cutting is distinctly abnormal for a regional airline. Alderney has suffered especially - for instance Blue Islands forced Aurigny to drop the Alderney - Jersey route as they could not keep up the competition without sizeable losses. Then Blue Islands dropped it.
I'm sure that most people agree that the concept of a States owned 'Aurignyflot' is an ugly one - since when was it the government's job to run the airline? Since 1991 when Aeroflot gained its independence. Yes, Aurigny needs to be offloaded but really, why to an airline that has let the Channel Islands down time and time again?
Indeed, what Aurigny really needs is structural reform, and a jolly good shake-up, rather than offloading at a stupendous loss.
By the way, the person under the name of 'Hello' is talking sense so stop shouting them down and do listen to them - otherwise what's the point of commenting?
You seem awfully out of touch with the whole thing - the islanders' opinions, Alderney's interests, Blue Islands' history (and previous record) and indeed the truth. A quick look at PPRuNe reveals quite a lot about the situation that might interest you. Have a little look around at Blue Islands' previous track record - I leave it to you to decide whether it will stop its nonsencical route cutting at the drop of a hat.
Personally, I doubt it.
Create a unique icon for your replies at gravatar.com
Hello | Thu 22nd July 2010 Truthseeker - from what I understand Aurigny is to be sold for £1 AND the States of Guernsey is to pay off it's debts reported at £6m
Pinky - why has Aurigny never been a 'public service' as it is a service delivery operation owned by the public? You also propose means tested subsidy which suggests you feel there is some right to fly on and off the island but have also previously said there is no right to such service. Your position is not clear.
Create a unique icon for your replies at gravatar.com
truthseekser | Thu 22nd July 2010 I think people need to get real here apparently Aurigny will be sold for £1 pound that means it either has huge debt on its books or huge carried forward/ or current loses.
the route that is apparently worth a lot of money is the Guernsey/ Gatwick route-this could have been sold off separately by the states of Guernsey (it was not)-i think we have to have a little faith in Mr Coates that he will honour the Southampton/Alderney route- he will obviously make it profitable (if indeed it loses money-i dont think so) no company-has the obligation to operate a loss making route-i am absoloutly sure he can do a better job of running this airline than an arm of the states can-as a businessman he needs his hotel in Alderney to work -cut of the route to Southampton and its my opinion his hotel on Alderney is worthless-he has more at stake here than just the airline.People criticise the braye beach for stealing trade-most of the people i have met staying there had never heared of Alderney- untill this hotel and its marketing came along.
Also the southampton route is a monopoly if it stops being operated in an efficient manner the states of Guernsey can always reassure us they will open it up to competition-so our states members should be getting this option in writing NOW-this will not destroy any potential deal with Mr Coates but will give us another option and some protection.
Create a unique icon for your replies at gravatar.com
pinky | Thu 22nd July 2010 Ok, so looks like the options are:-
1- Blue Airlines buys Aurigny
Support Mr Coates, a small business man with vested interest in Alderney, with this bid he can re-establish the essential routes and have a chance at turning a loss making company. This will in turn benefit all on the island. Do you really think he is so stupid he will let his hotel and the whole island suffer with less flights!?!
2- FlyBe buys Aurigny
FlyBe, a big business whose only interest is saving and making money, they have one concern Aurignys Guernsey-Gatwick route. Let them buy Aurigny so their auditors can analyze all loss making routes and suddenly you will see everyone in Alderney using a Ferry on and off the Island. Tourism, Business and Locals suffer a slow death alike.
Is Mr Coates bid ideal? NO
Is Mr Coates bid the best option on the table? At the moment YES
If your concern is Mr Coates reselling Aurigny at a later stage, then support him re-establishing successful routes now so they are less likely to be cut by the bigger boys at a later stage.
Re: Hello- contrary to your belief Aurigny has never been a public service, all the same did I not mention subsidised and means tested flights for locals?
Create a unique icon for your replies at gravatar.com
Hello | Thu 22nd July 2010 Pinky - You've chosen not to address my comments vis the public service aspect of our air links.
Mr Coats is indeed a very good businessman and if he could purchase Aurigny on the cheap, turn the combined operation profitable with a virtual monopoly on a number of routes and sell out to FlyBe who claim in the Press to be willing to pay millions he would indeed be an excellent businessman. It's what I would do if I was him......
Create a unique icon for your replies at gravatar.com
pinky | Wed 21st July 2010 So what’s everyone got against a merger between Blue Islands and Aurigny? Mr Coates has more than proved himself to be a very competent businessman within the communities of both Alderney and Guernsey.
What’s the big deal if the two airlines are to merge, lets not forget that Aurigny have pretty much been running a service without competition until recent years (Air Sarnia’s brief interlude excepted) and prices of fights have soared only since Blue Islands started to be introduced as the rivals (5 years ago £90 return AY-SOU now £160 return AY-SOU with Aurigny)
Why involve the Belle Vue? Well……just look at who’s responsible for setting up the anti merger page on Facebook and I can only hazard a guess at being responsible for the negative comments on these pages?
Sounds like a bunch of sour grapes to me, someone does not like a bit of healthy competition and starts throwing mud when others try to make progress……hmmm
Create a unique icon for your replies at gravatar.com
Hello | Wed 21st July 2010 Pinky - God has nothing to do with this so why a lack of scriptural guidance should mean Mr Coats gets to buy Aurigny is not clear?
God also fails to mention trains and buses (a remarkable lack of foresight) but these seem to require some form of subsidy in most countries as they are regarded as public services. As we live on an island here or in Guernsey I should say that our airline provides a public service and therefore there is a good argument for public ownership.
Or maybe the States could follow the British Rail model and franchise out the routs to private operators with set minimum service levels - but then the UK rail network receives roughly the same subsidy per capita that Aurigny does. About £30.
Create a unique icon for your replies at gravatar.com
pinky | Wed 21st July 2010 Well maybe its actually time for a wake up call. No where in the world is there a god given right to have an airline as a means of transport and no despite the name, Aurigny is not Alderney property.
If you chose to live on an island, ever since the beginning of time getting on or off that island has always posed a problem. Given the reaction by many over this issue maybe people should be a little bit more grateful that someone is actually willing to make a difference, be it in your opinion good or bad.
The way things are going Mr Coats or any other potential bidders could easily pull due to the usual public hostility, then what do you have? Predictably some in Alderney with the loudest voices have it all wrong, attacking the bidder rather than the Guernsey States for giving up and dropping Alderney into this mess in the first place!
Community spirit??? Come on Alderney rather than sitting on ‘the objectionable fence’ collectively put your money together and buy the airline, then justifiably you can state Aurigny is Alderney!
Create a unique icon for your replies at gravatar.com
charlie | Wed 21st July 2010 Pinky........................the forum is not there for you to air your personal thoughts on the Belle Vue. Don't like it??? dont go there!!! Regarding the airline, Mr Coates is getting Aurigny for £1 about the same as he paid for part of Braye Beach, full of promises and none carried through. His words, if I can not have this part of Braye Beach I will not continue with the Hotel!!!Pathetic. How long before he says If you don't give me a new airport I will take my toys elsewhere!!!!!! The man who said how dear to his heart Alderney is, he remembers reading Joey books as a child, makes me sick, first thing he did when he took over Blue Airlines was to move it to Jersey!!!!! Public meeting, in mr Coates ways, this will be to tell you what you want to hear and then do as I like,,,,,,,,,,,,,,,,,,,,,,,,,because I can!!!!!
Guernsey want to save money?? Sell Mr Coates the bus service for £1 this will save then 1.8 Million, only 200K short of the subsidy for Aurigny. Aldenrney people Bailiwick TAX PAYERS do not have the advantage of using the buses but they do the Airline. AURIGNY is Alderney!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Create a unique icon for your replies at gravatar.com
Elizabeth | Tue 20th July 2010 Dearest Pinky............ Thought we are talking about Areoplanes and not Hotels !!.
I think you will find that "local" opinion is pretty much one-sided on this proposed merger. It is seen by many, many people as a really bad move for Alderney and very worrying for the already high unemployment on the island.
Create a unique icon for your replies at gravatar.com
pinky | Tue 20th July 2010 Have to give respect to anyone who wishes to buy a loss making company, route closures as a result, yes maybe, but perhaps Aurigny should have delt with that in the first place. Keep it basic flights from Alderney to Guernsey and Southampton, that’s it job done, finish.
Most of the voices of complaint seem to be coming form the Belle Vue. Hey guys bit rich talking about monopolies on the island when you guys benefited from your strangle hold since the 70's, only now are you suffering from others providing better service.
Investment and progress is essential, don’t knock those that take a risk if you are not willing to put your money where your mouth is!
Create a unique icon for your replies at gravatar.com
pinky | Tue 20th July 2010 Have to give respect to anyone who wishes to buy a loss making company, route closures as a result, yes maybe, but perhaps Aurigny should have delt with that in the first place. Keep it basic flights from Alderney to Guernsey and Southampton, that’s it job done, finish.
Most of the voices of complaint seem to be coming form the Belle Vue. Hey guys bit rich talking about monopolies on the island when you guys benefited from your strangle hold since the 70's, only now are you suffering from others providing better service.
Investment and progress is essential, don’t knock those that take a risk if you are not willing to put your money where your mouth is!
Create a unique icon for your replies at gravatar.com
BW | Mon 19th July 2010 Sold G-RHOP Trislander to a New Zealand Company on 30/05/2008.
Create a unique icon for your replies at gravatar.com
Icey | Mon 19th July 2010 Seems to me that he doesn't want competition now he's got his Hotel. Such a change from the man who demanded when he was trying to get it. Greedy.
Create a unique icon for your replies at gravatar.com
Hello | Sun 18th July 2010 Ed - Good point and if used only to service Alderney 3 Trislanders would be sufficient and if brand new would last us well into the middle of the century.
I wonder what one costs?
Create a unique icon for your replies at gravatar.com
Anne | Sat 17th July 2010 ,Sorry Mr Coates but I think you are already unwelcome in the pubs in Alderney, other than your own. You talk a good talk but when it comes to reality you do not care about alderney. Blue Islands is only here to service your hotel. Your airline took on Aurigny,s Jersey route and started several other routes and apart from guernsey closed them all down. Please do us all a favour and stay in guernsey. We listened to all your spin when you were buying the braye beach and told us how we were all going to benefit. Ask the hoteliers and guest houses in Alderney how your business has affected them!! A man with too much money is very dangerous for alderney. We have seen this before. Remember the "Man in Black"! Aurigny 40 yrs service. Blue Islands 3yrs. No contest.
Create a unique icon for your replies at gravatar.com
truthseeker | Sat 17th July 2010 I am pleased the Mr Coates has made clear his intentions-he has already invested £8 million(aledgedy) in Alderney with the Braye Beach Hotel and stuck with it so lets hope this is all part of his plan to get more people to visit Alderney-whats going to drive more visitors to Alderney is promotion which is something that he is obviously very talented at, lets hope he makes it his mission to save the tourism industry in Alderney.My only concern is that individuals sometimes do things for emotional reasons rather than purely financial-thus they can take offense very easily and get up and leave -something that the states of Guernsey is unlikely to have done-lets hope he is true to his word and he can enjoy a friendly welcome in the pub for his later years in Alderney.
Create a unique icon for your replies at gravatar.com
Ed | Fri 16th July 2010 Coates seems not to remember that Britten-Norman will resume production of the Trislander (entirely new-build, NOT the OAPs of the sky), if they recieve three orders.
The Journal believes this is an opportune moment to conduct a survey of the States. The aim is to help the States, its members and those who are considering standing for election. Click here to vote!
The Guernsey Bereavement Service has made three visits to Alderney over the past few months and would like to continue to help you. We are visiting the island again on Tuesday 31st August and would invite anyone who feels they would like Bereavement Counselling to telephone the Bereavement Service Office on 257778 to make a time to meet one of our counsellors.
Mon 6th September 2010 AHOHA (Aldeerney Hard of Hearing Association)
Short AGM followed by a Talk and PowerPoint presentation:'Sri Lanka - Recovery from the War in Jafna - a Personal Experience' by James Dent., Jubilee Home, 14:30 to 16:00
Mon 6th September 2010 Alderney Music Society - Tom Poster (Piano)
Tickets from Sara Fisher (Next to Reynards), Anne French Room, 20:00