Jersey’s Blue Islands Airline Collapses Over Pandemic Debt
Jersey-based regional airline Blue Islands has entered administration, leading to the immediate cancellation of all its flights. This unfortunate event marks a challenging period for UK regional carriers, following the earlier failure of Eastern Airways. The collapse of Blue Islands appears to have been primarily triggered by its inability to service an £8.5 million loan acquired from the Government of Jersey during the pandemic. Despite ongoing discussions with Jersey's Council of Ministers, further investment was not forthcoming.
Blue Islands, with a fleet of five 70-seat ATR72 aircraft, provided crucial air connectivity for Jersey and Guernsey. Its year-round routes included Bristol, East Midlands, Exeter, and Southampton, with a tag flight from Leeds Bradford to Southampton. During the summer, it expanded services to Dublin, Newcastle, Norwich, and Paris. The airline had a long history, starting in 1999 as Le Cocq's Air Link, rebranding twice before becoming Blue Islands in 2006, and even operating as a Flybe franchise between 2016 and 2020.
Jersey's Treasury Minister, Deputy Elaine Millar, expressed profound sadness over the suspension of operations, highlighting the immediate impact on employees and disrupted passengers. She assured that government support is available for Jersey-based passengers, and contingency plans are in motion to swiftly reinstate essential air connections, prioritizing routes critical for medical services. Passengers are advised against travelling to the airport and encouraged to rebook with alternative airlines, while medical transfers will be handled separately. The government is actively seeking an alternative airline to ensure sustainable long-term air links for the island. Loganair, which operates an ATR72 fleet and previously had a codeshare agreement with Blue Islands, is considered a likely candidate to potentially take over assets.
(Source: https://www.headforpoints.com/2025/11/15/jersey-airline-blue-islands-goes-into-receivership/)
