Aurigny is to stop flights to London City Airport from October due to a lack of demand and high operational costs.
According to a report by ITV, the States of Guernsey-owned airline intends to refocus its efforts on other routes, particularly London Gatwick.
Aurigny CEO Mark Darby said: “The decision to end our London City service was not taken lightly, but after considerable effort and investment, it has just not proved to make commercial sense.
“There are a number of key factors at play, not least the high costs of operating to London City and the lack of demand for the route.”
The airline says that, despite its promotional efforts over the past two years, more than 50 per cent of seats were empty.
From December, it will begin handling its own ground operations from Gatwick Airport. The company said it already handles its own operations in Guernsey, Alderney and Southampton, and that this will "enhance the overall customer experience by improving disruption handling and passenger communication".
States supports move
The President of the States of Guernsey's Trading Supervisory Board, Deputy Charles Parkinson, commented: “The board is supportive of Aurigny’s plans to deploy its own team of staff at Gatwick Airport and the benefits this will bring. We also support the decision to cease the London City operations as it is a loss-making route.
"There is considerable pressure on Aurigny to improve its financial position and I know this is something its board takes very seriously. Indeed, the revised shareholder objectives that have been recommended following the review include a requirement for Aurigny to move to a sustainable operating surplus.
“This still must respect the airline’s role as an economic enabler, and that it will continue to maintain a good network of links to the UK, including its two remaining services to London Gatwick and London Stansted. We are also satisfied Aurigny can accommodate the demand on its Gatwick and Stansted routes."
Any passengers who have booked flights to London City after 27 October will be contacted by the airline or their travel agents and offered a full refund or alternative flights on the network.
Alternative operators
Deputy Peter Ferbrache, President of the Committee for Economic Development, said: “We note the decision of Aurigny to drop the Guernsey to City route. Whilst we were aware that this was likely, we were unaware of the exact timing of this announcement, but that was a matter for Aurigny.
“This is commercially the right decision for Aurigny, but the CfED believes that, marketed better and operated in a more efficient basis, this route has the potential to be economically advantageous to Guernsey.
"As such, the CfED is already talking to potential operators who may be interested in operating over this route.”
Guernsey Finance Chief Executive Dominic Wheatley said: “We can understand why Guernsey industry may be disappointed. In our view, any reduction in Guernsey’s access into London is regrettable, as is the loss of onward connections from London City that are not as easily accessible via Gatwick.”