Interview: "Hopefully, everybody will be able to get their money back"

THE morning after one of the most chaotic nights Jersey’s travellers have faced in years, Consumer Council Chair Carl Walker sat down with the JEP to unpack what the news means for passengers.

AN airline collapse is always disruptive, but in a place as reliant on a handful of key routes as Jersey, the shock carried an extra intensity – not least because the news landed on a Friday night, “out of the blue for a lot of people”.

It was at an emergency meeting on Friday afternoon that ministers decided to pull the plug on future funding for Blue Islands – and the Consumer Council began receiving calls almost immediately.

“We got calls yesterday afternoon from people within the government and other agencies alerting us to the fact that this might be happening,” Mr Walker explained.

His team activated what has become an informal crisis routine – gathering facts, drafting advice, preparing to help stranded Islanders work out what came next.

The sudden grounding for Blue Islands was not without warning signs, Mr Walker explained.

“Blue Islands had been on everybody’s radar, certainly since the summer,” he says, pointing to repeated delays and cancellations that had become a source of growing public frustration.

The airline had been negotiating over its £10m Covid-era loan, wrestling with shortages of aircraft parts, and showing signs of operational strain.

“That continually highlighted the fact that consumers had no protection at all when using Blue Islands because of where it was based.”

And behind the day-to-day difficulties, there were deeper concerns.

“Some Islanders were concerned the airline was stretching itself too far before it got the basics right.”

Such concerns were among the key reasons that the Consumer Council had been pushing the government to close what the rights watchdog had previously described as a “glaring gap” in protection. While UK and EU legislation protects travellers on inbound flights from airports in these jurisdictions, outbound flights operated by Channel Islands-based carriers are not covered by laws EU261 or UK261, leading to a disparity Mr Walker had said was “unacceptable”.

Pushed to create a Jersey-specific scheme, the government’s response had been that any local version would need to be carefully considered “to understand the impact that it would have on route viability and ticket pricing”.

By Saturday morning, Mr Walker estimated that around 1,200 people were stranded – either unable to return to the Island or unable to start journeys they had already paid for.

“Their return tickets are no longer valid, so they need to fund themselves through their credit card or debit card, a means to get home on another airline. That is going to be expensive.”

His advice for anyone currently stuck away from home is clear: “Contact your travel insurance provider at the earliest possible stage. Find out what it is you’re covered for, and make sure you keep the receipts.”

While the situation is fluid, documenting every cost and step is essential, Mr Walker said.

He added that the Civil Aviation Authority is expected to issue confirmation of the airline’s cessation — a document many insurers will require before honouring claims.

But the crisis extends far beyond the people currently out of the Island this weekend. Thousands more have paid for future travel.

“We understand that there are approximately 21,000 future advance tickets already sold with Blue Islands across the next 12 months,” Mr Walker said.

These passengers have a different route of recourse. “Contact your credit card provider, and, under the Consumer Credit Act, you will be issued a refund back to your statement, so you’ll be covered.”

Debit-card users, often a source of anxiety in collapses like this, may also be protected.

“A lot of debit cards do carry the Visa or MasterCard sign now, and if they do, there’s a very high chance you’re covered under the same Consumer Credit Act.”

PayPal payments, too, often fall under similar protection.

“Hopefully everybody will be able to get their money back — and then you’re just going to have to rebook with another airline, either immediately or bide your time.”

Amidst the chaos, there is a glimmer of stability. Overnight, Mr Walker said his team noticed that UK-based airline Loganair began loading replacements for several key Blue Islands routes into their site: Bristol, Exeter, Southampton and Guernsey.

Beyond helping to patch up any connectivity issues that may arise, Loganair’s move has a second benefit: consumer protection laws automatically apply.

“Because they are a UK-based operator, that gives consumers in Jersey the coverage in terms of consumer protection that they didn’t have on Blue Islands. If you are delayed by a certain amount of hours, you are entitled to compensation, to meals, hotel rooms.”

With the immediate picture stabilising, with two Loganair aircraft due to arrive on the Island on Sunday afternoon, attention is shifting to the longer-term picture.

Inter-island routes will undoubtedly be a concern, Mr Walker noted.

He advised anyone who has a travel booking further down the line to “keep an eye on the rescue fares page of the Loganair website, where Loganair will hopefully be bringing more routes online”.

“It’s too early for them to commit to exactly what routes they can take over. They are looking at all of them. So there is hope, but that will take time. So therefore, if people need to travel a bit more urgently, then go with somebody else, and then claim the refund back from your credit card and debit card for your original Blue Islands ticket.

Mr Walker said that, not only in the immediate aftermath, but in the weeks and months ahead, the Consumer Council’s focus will remain on helping distressed travellers navigate a situation that erupted overnight, which, for many, could cause considerable financial strain.

“There might be an excess to pay on your travel insurance – the first hundred pounds, the first twenty pounds, it depends on your policy. But more than that, nobody should suffer.

“If anybody is really struggling to get to navigate this and what to do and how to get their money back, or is finding they’re coming up against a brick wall, get in touch with the Consumer Council. We can always help and advise.”