Aurigny is planning its fifth new route in six months
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Guernsey's state-owned airline, Aurigny, says it wants to take over British Airway's flights between Jersey and Southampton.
British Airways (BA) has announced it is to stop flying the route on 25 October, blaming low profitability.
The politician responsible for tourism in Jersey, Deputy Lyndon Farnham, says the loss is a serious blow for the island.
However, as well as Aurigny planning a licence application, rival airline Flybe has said it will increase its number of flights on the route.
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It would provide a perfect complement to our expanding service network
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Deputy Farnham said the loss of a major international airline on the route is a sad development.
He said: "Whatever way you look at it, I don't think we can take anything positive from this to be absolutely honest.
"I think British Airways has been, is, and hopefully will always be, a very important partner with us from a transport links point of view.
"But I don't think we can take good things from this, whichever way we look at it."
BA said it was a "difficult decision" to withdraw the service."
Aurigny managing director Malcolm Hart said it was a very attractive opportunity.
He said: "Southampton is the major business and tourism gateway for the south of England and would provide a perfect complement to our expanding service network."
If Aurigny, which owned by the States of Guernsey, is granted a licence, it will be its fifth new route it has set up in the past six months.