Blue Islands has today gone into liquidation – owing the Government of Jersey £9.1million and an unspecified amount to the States of Guernsey.
A statement issued by Jersey’s Minister for Treasury & Resources also confirmed that a meeting is being arranged to work through issues around securing a longterm operator for the Guernsey-Jersey route.
Deputy Elaine Millar said her Chief Minister had spoken with Deputy Lindsay de Sausmarez over the weekend on that topic.
“We are aware of the decision by the States of Guernsey Committee for Economic Development to designate inter-island services as an essential air link,” she said. “Like Guernsey, we recognise the importance of air connectivity. Over the weekend, Jersey’s Chief Minister spoke directly with Guernsey’s Chief Minister, and they agreed that both islands share a strong desire to seek the best solutions for the Channel Islands. A formal meeting is being arranged to discuss how the islands can work together to ensure that we have sustainable inter-island and regional connectivity.”
Planes leased by Blue Islands were impounded at Guernsey Airport this weekend, with STSB President Deputy Mark Helyar confirming the airline owes Guernsey money.
Deputy Millar’s statement this afternoon has confirmed how much money it owes to Jersey too. This includes £7m outstanding on its covid loan, £1.6m in interest, and £0.5m from an additional loan Blue Islands was given in Jersey earlier this month.
“Having provided the financial support needed for Blue Islands to continue operating essential air links during Covid, and further support since then, the Government of Jersey was aware before Friday’s announcement of the company’s position,” Deputy Millar said.
“Discussions had taken place between Government and Blue Islands about what support could be provided. Those discussions, and their outcomes, were not made public because doing so would have risked compromising confidence in the airline, exacerbating an already difficult situation.
“Very considerable thought was given before Ministers took the decision not to provide further financing, subsidy or to take ownership of Blue Islands. We felt this was not the best use of public funds, and that more sustainable, alternative options were available to ensure the continuation of our lifeline routes.
“I have shared an overview of the financial position and will provide more detail in an update to the States Assembly on Tuesday 25 November. We will also be briefing Scrutiny ahead of that session.”
The Government of Jersey has said that “as a secured creditor it is expected that some funds may be recoverable”, but that will be subject to the liquidation process, which is expected to start in Alderney – where Blue Islands is registered – later this week.
More to follow…