Blue Islands (SI, Jersey) has rejected claims by Aurigny Air Services (GR, Guernsey) that it is downsizing its operations. Last week, Blue Islands announced that effective January, it will terminate direct flights to Amsterdam Schiphol, Zurich, and Paris CDG in favour of a codeshare agreement with CityJet (WX, Dublin International) using London City as a transit hub.

However, the Guernsey based carrier said the move would render its groundhandling operation at Jersey unviable thereby threatening 30 jobs.

"...the impact on Aurigny of Blue Islands' recent decisions is substantial," Aurigny chief executive Mark Darby said. "The withdrawal of up to four or five flights per day that required our ground handling services renders our operation in Jersey economically unviable."

Blue Islands, however, rejected Darby's sentiments blaming Aurigny's woes on its business model.

"Unfortunately, rather than adapting its ground handling operation to ensure it remained viable, Aurigny have chosen to abandon Jersey," Blue Islands told the BBC in a statement.

The two carriers signed a joint cooperation agreement in 2013 in which Blue Islands would operate Jersey to Guernsey flights while Aurigny would take care of ground-handling and ticket sales. Aurigny says the closure of its groundhandling operation will not affect its codeshare agreement with Blue Islands.