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Talks over the potential sale of Aurigny to rival airline Blue Islands are continuing, Guernsey's Treasury and Resources minister has said.

Talks have continued since the deal was made public in July, but can only move forward after due diligence checks.

Deputy Charles Parkinson said: "We're very much in the foothills" and added the deal could still come to nothing.

He said the department would not go forward if there was not a solid business case.

Deputy Parkinson said: "Until we're satisfied that there is a business case for combining these airlines, Treasury and Resources are not going to bring any proposals to the Policy Council or the wider States.

"If we do not satisfy ourselves that there is a strong business case then we won't bring any proposals."