The Channel Islands Competition and Regulatory Authorities (CICRA) have dropped an antitrust investigation into the franchise agreement between flybe. (2002) (Exeter) and Blue Islands (SI, Jersey) following the launch of start-up Waves (Guernsey) which introduced competition on the previously monopolised services, the Jersey Evening Post has reported.

"CICRA has to prioritise projects that appear likely to have the greatest impact on consumer welfare. We have decided that, with a new operator now offering flights on the inter-island route, we should step back from this review for the time being and monitor the impact of this increased competition. This will also allow us to focus our resources on other matters that have a higher priority at the present time," CICRA chief executive Michael Byrne has said.

Byrne has added that the termination of the investigation does not determine whether the law was broken or not.

The investigation was launched in September 2016 as CICRA challenged whether the franchise agreement, firmed in March 2016, serves the best interest of the inhabitants of the Channel Islands Jersey and Guernsey.

The authorities were particularly concerned about the high number of cancellations of the inter-island flights. They were also worried that the terms of the franchise agreement may lead to higher prices and restrict Blue Islands' ability to operate independently from its franchise partner.

Under the terms of the agreement, Blue Islands deploys its fleet of five ATR - Avions de Transport Régional turboprops on a number of services out of the Channel Islands. According to the ch-aviation schedules module, the carrier operates services out of Guernsey to each of Cardiff, Southampton, and Zurich, as well as out of Jersey to each of Bristol International, London City, and Southampton. It also serves the inter-island shuttle between Guernsey and Jersey.

flybe. itself also operates a number of flights between Guernsey and Jersey using own Dash 8-400 equipment. The carrier also serves multiple destinations in the United Kingdom out of Jersey, as well as Birmingham, GB and Exeter out of Guernsey.

For its part, Waves, a start-up which launched in March 2018, offers high-frequency scheduled services between Jersey and Guernsey using Cessna (single turboprop) 208 Grand Caravan equipment. The airline also offers passenger charter flights between Jersey, Guernsey, and Alderney.