There is “no evidence” the Government ever monitored Blue Islands’ performance after handing it a £10m lifeline loan during the pandemic – a gap branded “particularly concerning” by the public spending watchdog amid recent concerns over a string of cancellations.
The Comptroller and Auditor General’s ‘Critical Infrastructure Resilience – Transport Links’ report was published today.
“Lack of monitoring”
In it, Lynn Pamment raised concerns about the lack of clear and consistent tracking and reporting of the performance measures linked to the Blue Islands loan.
The report set out a list of Key Performance Indicators (KPIs) linked to objectives of the Government loan to Blue Islands.
But the C&AG found that: “There is no evidence within Government to demonstrate that information about the KPIs has been systematically collated, evaluated and reported on during the period of the loan.”
Ms Pamment described this “lack of monitoring” as “particularly concerning” due to recent concerns about Blue Islands’s services.
Repayments
It last month emerged that Blue Islands had not paid back any more of its £8.5 million taxpayer-funded loan in the previous eight months.
Express reported last year that the airline had repaid £1,425,653 of the capital sum as of 30 September 2024.
But the response to a request made under the Freedom of Information Law revealed that, as of 31 May 2025, that amount remained unchanged.
This meant that just 17% of the total loan had been repaid – despite the repayment period being more than halfway through.
It is understood that capital repayments and interest are made quarterly in accordance with the terms of the loan – but the latest figures reveal that Blue Islands hasn’t repaid a single penny of the loan in the last two quarters.
It previously emerged that the airline did not end up using all of the £10m of Government-backed credit issued almost three years ago in the depths of the pandemic.
The loan originally had to be repaid by the end of 2026 but, after the second wave of covid hit over the winter of 2020/21, the final repayment date was extended to 31 December 2028.
Small fleet “presents an inherent risk”
Express contacted the government for comment on whether it considers Blue Islands to be in breach of the loan agreement, and if any actions are being considered in light of this.
In response, Treasury Minister Elaine Millar said: “We recognise the important role Blue Islands plays in providing connectivity for islanders.
“We remain committed to working with the airline to support reliable travel options and ensure that islanders continue to have choice and flexibility when flying off-island.”
The C&AG said that Blue Islands’s small fleet of five aircraft “presents an inherent risk to resilience”.
The report also raised concerns that existing routes are being compromised by the promotion of the new Paris route.
Ms Pamment explained: “In May 2025, Blue Islands announced that due to delays in delivery of a new aircraft and damage to another aircraft, it would have to cancel 28 flights from the Summer 2025 schedule. This would affect four of the carrier’s 18 routes.
“In the context of these challenges and the small fleet available to Blue Islands, there is a danger that in promoting the new Paris route, existing routes are compromised.”
The C&AG recommended that a formal process for post-implementation review of new air route trials involving Government, Ports of Jersey and Visit Jersey should be developed.
This should commence with a detailed review of the impact of the new Paris route served by Blue Islands, she said.