Blue Islands owes the Government of Jersey over £9m, it has emerged – and Loganair will also receive up to £1.5m from the public purse.
In a statement shared on Monday afternoon, Treasury Minister Elaine Millar confirmed that Blue Islands has decided to go into liquidation.
Deputy Millar confirmed that the Jersey-based airline still owed the Government: £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, and £500,000 from an additional loan given on 7 November 2025.
It is expected that “some” of the £9.1m may be recoverable by the Government as part of the liquidation process, the Minister said.
Deputy 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, the Treasury Minister said, 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 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 added.
At the same time, Blue Islands also confirmed on its website that it was entering liquidation, and had appointed Ernst and Young as joint liquidators.
A notice published in Jersey’s Gazette said that the provisions of section 109(b) of the Companies (Alderney) Law 1994 would apply.
Anyone with claims against the company has been asked to send a detailed account to the Joint Liquidators on or before 29 December 2025.
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