A DECISION on which airlines will run the inter-island route between Guernsey and Jersey next year is expected by the middle of next month.

Two operators – Aurigny and Loganair – have applied for licences to run the route after Guernsey’s Economic Development Committee designated it as “essential” and therefore a licence is required to run it.

Inter-island flights had previously been operated by Blue Islands, but the firm collapsed last month after mounting financial losses.

At the moment, Loganair has special dispensation to fly between Guernsey and Jersey, and Aurigny is also flying between the islands – but from 15 January, a Guernsey-issued licence will be needed.

Aurigny applied for an air transport licence for the inter-island route on 17 November, with Loganair following with its own application this week.

The licence applications are subject to public consultations.

Comments can be submitted in writing to the Transport Licensing Authority at Sir Charles Frossard House, La Charroterie, St Peter Port, Guernsey, GY1 1FH or by emailing transportlicensing@gov.gg.

It’s not yet known how many licences the Transport Licensing Authority is considering issuing on the inter-island route.

Aurigny ran a regular inter-island service to and from Jersey for many years, with Flybe and later Blue Islands offering a less frequent service between the islands as part of a triangular route to and from a UK airport.

Aurigny and Blue Islands previously shared the inter-island service through a code-share system, but that ended in 2016 when Aurigny withdrew and Blue Islands took it on by itself.

Blue Islands’ suspended operations at short notice last month after a request from the airline for extra funding from the government to keep it afloat was rejected.

It has since emerged that the total debt owed by Blue Islands is almost £12.4m with more than £9m owed to the Treasury Department for the lion’s share of a £8.5m Covid loan then extra prop-up payments in September and November. A further £3.275m is owed to Ports of Jersey in unpaid landing fees which is unlikely to be recovered after the airline formally became bankrupt.