Guernsey-Gatwick flight prices controlled

Aurigny has leased a jet from Flybe to operate the service until its new plane arrives in June

Sixty-percent of seats on flights between Guernsey and Gatwick will be sold for £65 or less during 2014, the island's treasury has announced.

It follows Flybe pulling out of the route in March leaving just States-owned airline Aurigny to operate it.

The price excludes UK Air Passenger Duty, which currently stands at £13.

The move is part of tighter scrutiny being given to four States-owned companies in a bid to ensure they offer value for money for the island.

The airline had accumulated losses of £12.5m by the end of 2012 and was expected to make further losses last year.

Treasury and Resources Minister Gavin St Pier said: "Aurigny remains confident that it can deliver on these commitments whilst continuing to move towards a break-even position for the airline in 2015/16."

The States is currently guaranteeing loans for the company, including one for the purchase of a 122-seat Embraer 195 jet for use on the Gatwick route, and has been asked to guarantee or loan money to allow the company to replace its trislander fleet.

The fare targets are due to be reviewed annually so any change in costs, such as landing fees at Gatwick Airport, can be taken into account.