A planned subsidised ferry service between Alderney and Guernsey will not go ahead after a failed tender process, the States of Alderney has confirmed. The decision means passengers will now rely on existing private operators without government financial support.
The Economic Development Committee said it ran a full tender process to appoint a ferry provider for a subsidised seasonal inter-island service. However, officials said none of the applicants were able to meet the required criteria, leading to the cancellation of the plan.
As a result, the committee concluded it was not in a position to award a subsidy to any preferred provider. This marks a setback for efforts to reduce travel costs between the Channel Islands through public funding support.
Alderney Ferry Services, one of the operators on the route, confirmed it had not been awarded the subsidy. The company also said it would increase ticket prices following the decision, adding pressure on passengers who regularly travel between the islands.
The cancellation of the Alderney ferry subsidy has raised concerns about connectivity and affordability for island residents. The service between Alderney and Guernsey is considered an important transport link for both communities, especially for travel, work, and essential services.
Committee chair Stuart Clark said the decision was not taken lightly. He explained that public money must meet strict standards and pass both financial and quality checks before being approved for use in transport subsidies.
He added that the tender did not provide enough assurance to justify investment of public funds under current economic conditions. Officials said they needed strong evidence that any subsidy would deliver value for money and meet all required standards.
Despite the outcome, the committee said it remains open to exploring future options for ferry providers. It noted that the current transport link is still being maintained by independent operators without state funding support.
Clark expressed confidence that competition in the ferry market would continue to ensure regular service between Alderney and Guernsey. He said maintaining connectivity between the islands remains a priority even without the subsidy scheme.
The committee also acknowledged that the decision was not the outcome it had hoped for. However, it said the review process included careful consideration of both financial and service quality factors before reaching a conclusion.
Alderney Ferry Services said the previous subsidy had helped keep ticket prices lower for passengers. With that support now removed, the company said fares will rise by £15 per person, including for children.
The operator said it regretted the increase but explained it was necessary to continue running the service without government support. It also highlighted the challenges faced by small transport companies operating in a limited market.
Despite the price increase, the company said it remains committed to maintaining the ferry route. It stressed that the service is vital for residents and visitors who rely on sea travel between the islands.
The company also thanked passengers for their continued support, saying that even small fare changes can affect travel decisions for families and regular commuters.
The decision highlights ongoing challenges in maintaining subsidised transport links in smaller island communities. Without government funding, operators often rely on fare income to cover rising operational costs.
For now, the Alderney ferry subsidy plan has been dropped, but officials say discussions about future transport support options will continue as they look for long term solutions to maintain affordable connectivity between Alderney and Guernsey.
