Blue Islands Enters Liquidation

Treasury Minister Elaine Millar has expressed sympathy for staff affected by the closure of Blue Islands, and said the government has put in place “sufficient help and advice” for those impacted.

Speaking on Monday, Deputy Millar acknowledged the efforts of Ports of Jersey, Loganair, and others during what she described as a “turbulent time,” adding that the government remains focused on maintaining resilient and sustainable air links for the island.

Deputy Millar also confirmed the total amount owed to the Jersey taxpayer by Blue Islands, including £7.4 million from a Covid-era loan and £1.7 million from two more recent loans, bringing the total to £9.1 million.

Blue Islands attributed its closure on Friday to the government’s decision not to provide additional financial support.

Deputy Millar explained that the government had previously provided the support necessary for Blue Islands to operate essential routes during the pandemic, and had continued to offer assistance in subsequent months. Discussions about further support took place before Friday’s announcement but were not made public, she said, to avoid undermining confidence in the airline.

“Considerable thought was given before Ministers decided not to provide further financing, subsidy, or ownership of Blue Islands,” Deputy Millar said. “We felt more sustainable alternatives were available to ensure the continuation of lifeline routes without using public funds in this way.”

Following Blue Islands’ closure, Loganair has taken over some of the routes previously served by the airline. The government has provided up to £1.5 million to Loganair to accelerate its full entry into the Jersey market, reducing the rollout period from 60 days to 48 hours. Deputy Millar noted that the airline faces “substantial set-up costs, far in excess of this funding,” including leasing an additional aircraft.

Both Loganair and Aurigny are now operating the Jersey-Guernsey route. Guernsey’s Committee for Economic Development announced today plans to designate the inter-islands service as an “essential” link, requiring airlines to hold a licence by mid-January.

Deputy Millar said that both islands’ Chief Ministers had spoken over the weekend, sharing a “strong desire” to find sustainable solutions for Channel Islands air connectivity. A meeting has been scheduled to discuss future collaboration on regional and inter-island routes.

The Treasury Minister is expected to provide a full update to the States Assembly on Tuesday, 25 November.