Blue Islands: Minister Outlines Statement, Timeline, and Government Support

Blue Islands Collapses After 26 Years; Government Secures Continuity with Loganair

Jersey, 25 November 2025

Blue Islands, the regional airline that has served the Channel Islands for 26 years, has entered liquidation following a decision by its Board of Directors to cease operations on 17 November. The closure has affected employees, their families, and the Island’s wider transport network.

In a statement to the States Assembly, Deputy Elaine Millar, Minister for Treasury & Resources, expressed regret at the airline’s collapse and thanked staff, Ports of Jersey officials, and contingency partner Loganair for their swift response.

“Despite this difficult news, I am grateful to Loganair for establishing services in Jersey within just 36 hours of notice being given,” she said.

The Government has confirmed it provided significant financial support to Blue Islands over the past five years. During the COVID-19 pandemic, a £10 million loan facility—of which £8.5 million was drawn—helped maintain essential regional connectivity and repatriate Islanders. The airline also repaid £3.2 million in interest and capital during its operation.

More recently, the Government deferred repayments and provided further financial assistance, including £1.2 million in September 2025 and a £0.5 million drawdown in November, to sustain operations while a potential sale was explored. Blue Islands had sought to sell to either Loganair or Aurigny, but Ministers determined that additional public funding carried significant financial risk.

“Had we not provided support when we did, disruption to the public in the busy summer and early autumn months would have been far greater,” Millar said. The Government is a secured creditor and expects to reclaim the majority of funds from the liquidation process.

Loganair has been selected to provide business continuity, with services mobilised within 48 hours of Blue Islands ceasing operations. The airline’s plan offers greater scale, operational resilience, and guaranteed aircraft replacement within four hours of technical issues. Feedback from passengers on the new services has been positive, according to the Minister.

A detailed timeline released by the Government outlines the decision-making process and highlights key meetings from October 2024 through November 2025, including deferred repayments, negotiations with Loganair, and contingency planning.

The collapse of Blue Islands marks the end of an era in Jersey’s regional aviation, but government officials say decisive planning has ensured continuity of air links and mitigated economic disruption.