Aurigny was bought by Guernsey States in 2003
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A low-cost airline is calling on the States of Guernsey to give up its ownership of Aurigny.
Mike Rutter, chief commercial officer of Flybe, said the change would lead to more competition, more passengers and economic benefits for Guernsey.
His comments came as the state-owned airline celebrated its 40th birthday with an re-enactment of the inaugural flight from Alderney to Guernsey.
Flybe made the same call for the States to sell off Aurigny in 2005.
But the States, which bought Aurigny in 2003 following British Airways' decision to stop flying to Guernsey, said it was concerned that if it sold Aurigny, it would lose its landing rights at Gatwick.
Aurigny also fears that without a subsidy, Flybe would cherry pick its routes.
Flybe was officially responding to a briefing paper by the Commerce and Employment Department on the licensing process of air and sea links to Guernsey.
Commerce and Employment has said licensing should be made less bureaucratic and more transparent.
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