BLUE Islands has entered liquidation with over £9 million owed to the Government of Jersey – which confirmed today that Loganair will also receive up to £1.5m from the public purse.
In a statement shared this afternoon, the Treasury Minister confirmed that the Jersey-based airline will go into liquidation with a total of £9.1m owed to the government.
This is made up of:
- £7m of an £8.5m loan given during the pandemic
- £400,000 of interest on that loan
- £1.2m from an additional loan given on 12 September 2025
- £500,000 from an additional loan given on 7 November 2025
It is expected that “some” funds may be recoverable by the government as part of the liquidation process, the minister said.
Deputy Elaine Millar also confirmed that Blue Islands has been working on a sale process for the past year, which the government has supported by deferring loan repayments and providing funding to support liquidity.
The airline was unable to find a buyer without “further significant funding” being required by government, she explained, and it was “not possible to justify taking Blue Islands into public ownership or investing further public funds into it”.
Deputy Millar also confirmed that government has agreed to provide up to £1.5m to Loganair to “accelerate their full entry into the Jersey market from up to 60 days to within 48 hours”.
“In so doing, we have secured the future of the Island’s regional connectivity,” she said.
