THE majority of Blue Islands’ employees have been made redundant following the airline’s decision to cease trading and go into liquidation.
Liquidators Ernst & Young said on Wednesday that 12 staff had been retained to support the winding down process.
The update comes just a few days after Treasury Minister Elaine Millar confirmed that Blue Islands still owed the Government of Jersey £9.1 million.
This included £7m of an £8.5m loan given during the pandemic – and £400,000 of interest on that loan – as well as further financial support of £1.2m and £500,000 provided in September and November respectively.
And on Tuesday, Ports of Jersey revealed it was owed £3.275m from Blue Islands, accrued from landing charges and other fees and services.
In a statement, Ernst & Young said that the airline has a fleet of five leased ATR aircraft and employed around 110 people, mostly based in the Channel Islands.
“As of Friday 14 November, all flights and operations were suspended with immediate effect,” the statement continued.
“Following the appointment of the joint liquidators on 17 November 2025, the majority of the company’s employees have been made redundant, with 12 employees being retained to support the joint liquidators in the orderly wind down of the company.”
The government has said that, following a recent briefing with Blue Islands employees, it is continuing to prioritise “direct, practical support for those affected”.
The session was held at Union Street and included representatives of Loganair, which has stepped in alongside Aurigny to support air connectivity.
“The government will continue to work closely with affected employees to ensure they receive clear guidance, financial protection and practical help during this difficult period,” the statement added.
Meanwhile, Visit Jersey chief executive Tricia Warwick has said the organisation is “working closely with government, Ports of Jersey, and industry following the news”.
“Our immediate priorities are to ensure visitors receive clear, up-to-date information, and to provide reassurance to tour operators and key trade partners during this transition.
“Our thoughts are with the Blue Islands’ employees and passengers affected, and we are grateful to Ports of Jersey and Loganair for their swift action to maintain essential connectivity.
“We look forward to working with Loganair to support a smooth transition and to maximise opportunities to promote Jersey as a visitor destination.”
Two regional airports that were formerly served by Blue Islands and have yet to see a replacement carrier step in have expressed regret about the events of the past five days.
Norwich Airport managing director Richard Pace said: “We were saddened to see Blue Islands’ announcement on Friday and our sympathies remain with the airline’s staff and affected passengers.
“The Channel Islands have long been a popular seasonal link from Norwich and Blue Islands had intended to increase frequency next summer – our task now is to secure a new operator on the route and we are in active discussions to get the service replaced.”
A spokesperson for East Midlands Airport said: “We are saddened by the collapse of Blue Islands, which operated flights to the Channel Islands from East Midlands Airport for the past six years.
“We are concerned for the people working for Blue Islands and, at a time when we are seeking to increase choice for passengers, it’s disappointing to lose one of the popular options.”
