It’s been confirmed that Blue Islands’ bosses had been trying to sell the airline over the past year.
The Government of Jersey said it had supported those efforts, including by deferring loan repayments and providing funding to support liquidity in recent months.
However, the plug was pulled on Friday afternoon, with all future flights cancelled that night, and the business going into liquidation on Monday afternoon.
The Government of Jersey said that Blue Islands had been unable to find a buyer without further significant funding being required from the island’s public purse, and that it was not possible to justify taking Blue Islands into public ownership or investing further public funds into it.
Blue Islands already owed Jersey £9.1million at the time it ceased operations on Friday night.
That 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.
Blue Islands also owes the States of Guernsey an un-disclosed sum of money.
It’s likely that money is all owed to the island via Guernsey Ports, through unpaid duties at Guernsey Airport.
Planes leased by Blue Islands were impounded at Guernsey Airport over the weekend in lieu of the money owed.