For months Blue Islands has been in trouble, when the end came it was swift, other airlines quickly stepped in and Jersey’s government remained in the spotlight
- Blue Islands suspended trading on Friday 14 November and canceled all future flights
- Aurigny and Loganair move quickly to cover routes in Guernsey and Jersey
- Jersey ministers had raised concerns about Blue Islands late in May
- £7m. of loan with Jersey’s government remains unpaid
- Blue Islands employed more than 100 people across the islands
For months Blue Islands had been in behind the scenes talks with Jersey’s government.
But on Friday afternoon, politicians there said they could no longer support an airline that has served the Channel Islands for 26 years and employs more than 100 people.
By that evening the last flights were landing back in Guernsey and Jersey, passengers unaware of what was unfolding.
Later that night the airline confirmed it had collapsed.
“After very constructive dialogue with Government of Jersey in recent months, including what we understood to have been ongoing assessments of the future options, we were informed this afternoon that they are unable to provide further support,” Blue Islands said in a statement posted to its website.
“This has meant that we now need to suspend flying immediately whilst we consider the options available and how we can help our customers, staff and stakeholders.”
It was only in June that the airline added an ATR 72-600 to its fleet, leased from Jetstream Aviation Capital, joining its four ATR 72-500s and the CEO Rob Veron spoke of winning back customers' trust after cancellations and disruptions, this including cancelling 28 flights from its Summer 2025 schedule.
On 15 October it launched its summer 2026 schedule, adding more flights between Paris and Jersey and an extra non-stop Norwich service from Guernsey.
Six days later it announced it would fly a new route twice daily between Southampton and Leeds Bradford.
But behind this steady stream of positive public positioning there were signs of serious problems.
One of the obligations was to move its operating base from Guernsey to the island.
Repayment was originally due by 30 June 2026, but in perhaps the first sign of financial trouble, in June 2024 the schedule was restructured and extended to December 2028.
In October 2024, the States of Jersey confirmed that £8.5m. of the loan had been taken out, with around £7m. of the repayment still outstanding.
As of June 2025, the airline had been unable to make any further repayments.
Jersey’s government was clearly concerned - that same month a working group was set up that included its representatives and Ports of Jersey “to ensure the sustainability of Jersey’s regional connectivity”.
That regional connectivity very much lay in the hands of Blue Islands.
Commercial sensitivity was being cited in answers that gave little away.
There were key performance indicators linked to the loan, with representatives from Treasury and Exchequer, and Ports of Jersey, sitting in as observers in the airline's board meetings.
But the Jersey Audit Office released a damning verdict of the oversight in August: “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.
“This lack of monitoring is particularly concerning as I am aware that, in late May 2025, Ministers raised concerns about Blue Islands, including in relation to resilience of flights for patients needing UK and Guernsey services.”
In response, the States Chief Executive said that a periodic structured reporting arrangement was in place to ensure the Treasury Minister remained up to date and no additional action was needed.
The States of Jersey spent £1.67m. with Blue Islands in 2024, records show.
Its Treasury minister has confirmed the airline now owes Jersey government £9.1m, which consists of:
- £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
- £500,000 from an additional loan given on 7 November 2025
Guernsey Ports has confirmed it is also owed money by the airline.
Blue Islands is the second regional carrier to cease trading in less than three weeks after Eastern Airways stopped flying on 28 October.
What does it mean for passengers?
The Jersey Consumer Council has issued this advice:
- As Blue Islands was established as an Alderney company, normal UK travel protections do not apply. Neither Jersey nor Guernsey's government is expected to fund any repatriation flights.
- Passengers affected will need to re-book their own alternative travel options at their own expense and claim the cost back from their travel insurance provider. Ensure you keep any receipts or proof of purchase to help your insurance company process your claim.
- All future bookings made with Blue Islands as of 15 November have been cancelled.
- You will need to reclaim the cost of any Blue Islands flights from your credit/debit card provider and re-book with another airline. Even if you booked with a debit card, you may still be able to get your money back by initiating a chargeback, which is available for payments of £100 or more. You can find out more here.
- Some banks or card companies may require a Negative Response Letter from aviation authorities to confirm the airline has ceased operating. We will make this available here when it has been published by the CAA.
- When reviewing your travel insurance, check what your policy covers regarding Scheduled Airline Failure Insurance (SAFI) and End Supplier Failure.
- Consumers who have booked through Blue Islands should visit the Civil Aviation Authority website for the latest information.
Selina Chadha, Consumer & Markets Director at the UK Civil Aviation Authority, said: “We urge passengers planning to fly with this airline not to go to the airport as all Blue Islands flights are cancelled. Blue Islands customers should visit the Civil Aviation Authority’s website for the latest information.”
What are other airlines doing to help?
Aurigny has scheduled the following additional services over the next five days to assist passengers and secure critical lifeline routes:
Guernsey-Southampton:
Saturday: Flight GR658 Depart Guernsey 1820 Arrive Southampton 1905
Saturday: Flight GR659 Depart Southampton 1955 Arrive Guernsey 2040
Sunday: Flight GR658 Depart Guernsey 2050 Arrive Southampton 2135
Sunday: Flight GR659 Depart Southampton 2205 Arrive Guernsey 2250
Monday: Flight GR658 Depart Guernsey 2005 Arrive Southampton 2050
Monday: Flight GR659 Depart Southampton 2120 Arrive Guernsey 2205
Tuesday: Flight GR658 Depart Guernsey 1820 Arrive Southampton 1905
Tuesday: Flight GR659 Depart Southampton 1955 Arrive Guernsey 2040
Wednesday: Flight GR658 Depart Guernsey 1820 Arrive Southampton 1905
Wednesday: Flight GR659 Depart Southampton 1955 Arrive Guernsey 2040
Guernsey-Jersey:
Saturday: Flight GR304 Depart Guernsey 1300 Arrive Jersey1320
Saturday: Flight GR305 Depart Jersey 1350 Arrive Guernsey 1410
Monday: Flight GR304 Depart Guernsey 1510 Arrive Jersey 1530
Monday: Flight GR305 Depart Jersey 1600 Arrive Guernsey 1620
Tuesday: Flight GR304 Depart Guernsey 1140 Arrive Jersey 1200
Tuesday: Flight GR305 Depart Jersey 1230 Arrive Guernsey 1250
Wednesday: Flight GR304 Depart Guernsey 1140 Arrive Jersey 1200
Wednesday: Flight GR305 Depart Jersey 1230 Arrive Guernsey 1250
It has confirmed services will run on Southampton and Jersey up to and including Monday 6 January.
Aurigny offered a special ‘Get-Me-Home’ Fares for travel to Monday 17th November inclusive priced at £79.99 one way on all services between Guernsey and Southampton.
It made a similar offer on all services between Guernsey and Jersey priced at £49.99 one way.
Nico Bezuidenhout, Chief Executive of Aurigny said: “Aurigny’s immediate actions to help Blue Islands passengers underline our commitment to always go further in serving the people of Guernsey and always get travellers home.
“Through the weekend, the Aurigny team will be working to protect aviation interests in the Channel Islands, acting in its capacity and mission from the States of Guernsey to also be a social and economic enabler for the islands.”
Guernsey Ports extended its operating hours to help minimise disruption.
Deputy Lindsay de Sausmarez, President of the Policy & Resources Committee, said: “My first thoughts are for those whose livelihoods are impacted – Blue Islands staff based in Guernsey and across the Channel Islands – as well as all those whose travel has been affected.
“I’m grateful to the teams at Aurigny and the airport for acting extremely swiftly by putting on additional flights to make sure people can get home. Having the ability to do so as such short notice is undoubtedly a benefit of having our own airline.
“A huge amount of work is currently taking place across the States to restore connectivity and stability.”
Loganair offer new flights from Sunday 16 November, with special rescue fares from £80 one way on the following routes:
- Jersey - Guernsey*
- Jersey -Exeter
- Jersey - Bristol
- Jersey -Southampton
- Guernsey - Southampton*
*see Monday's update
Luke Farajallah, Chief Executive Officer of Loganair, said: “This is another sad day for regional aviation, coming so soon after the news about Eastern Airways. For almost two decades, the Blue Islands brand has played a vital role in the UK’s regional aviation market, serving Channel Island communities year-round with essential air connectivity.
“We understand how important dependable air links are, both for island residents and visitors, and we have a 63-year heritage of serving the regions of the UK.
“In response to the news, we acted immediately to introduce flights to and from Jersey along with special fares available to ensure that affected passengers can continue to travel with minimal disruption, and to provide reassurance at what we know is an unsettling time. This will then lead to establishing a new permanent operating base in Jersey.”
Monday 17 November update: Guernsey's States moves to protect Jersey route, licensing rules block Loganair from its plans to fly Southampton
On Monday morning, the States announced that any operator that wants to fly the inter-island route from 15 January next year would need a license.
Guernsey operates what has been called a quasi-open skies policy, where some routes are protected by the need for an airline to get a licence - to do so there are high barriers in place which essentially means the incumbent, States-owned Aurigny, has a monopoly.
This had applied to Gatwick and Southampton.
Economic Development has now decided to add Jersey to the list.
Currently the only active airline with a passenger licence to fly to Jersey is Aurigny.
Loganair's new schedule includes 20 weekly flights between Guernsey and Jersey with indications it will use an Embraer 145 for its new Channel Island operations, with two aircraft based in Jersey.
The other licence holders on the Jersey route are Blue Islands, Flybe, which collapsed in 2020 and Waves, which went bust in 2018.
Economic Development met on Sunday.
“This approach will support a long-term solution through a formal process, but will also enable travellers to make plans through the Christmas and New Year period – this is why we decided on the 15th January 2026 for implementation of the new arrangements," said President Deputy Sasha Kazantseva-Miller.
"We know there are currently two airlines selling flights between Guernsey and Jersey, so are confident islanders will have access to flights on this route during this period.”
Any licence process will take at least four weeks.
The Transport Licensing Authority, which has Deputy John Gollop as its President, makes the decision.
There is a legal requirement for a public consultation on an application.
Economic Development said its reason for licensing Jersey were:
- The disruption to the Channel Islands’ air connectivity following the sudden collapse of Blue Islands on Friday, which led to the Committee determining that greater resilience is required on the route, which licensing can provide;
- This follows the introduction of new sea travel arrangements in March 2025, which reduced the level of inter-island connectivity on ferry services, causing issues for island businesses, sports and community groups. These issues can be addressed by protecting the air route via a licensing process, which will support connectivity between Guernsey and Jersey; and
- The importance of providing security of tenure for an operator of the route, so that longer-term investment in the route can be considered for the benefit of travellers in both islands.
The States contacted Loganair to say that it cannot operate a Guernsey-Southampton flight without a licence after the airline put tickets on sale.
On Tuesday 18 November Deputy Sasha Kazantseva-Miller met with Loganair CEO Luke Farajallah.
“I am grateful that Mr Farajallah was able to travel to Guernsey to meet with me at short notice," she said.
"The meeting was constructive and it was very useful to discuss the opportunities Loganair sees in the Bailiwick. It is vital that we protect, and improve, our airlinks in Guernsey, including building greater resilience, and so the Committee continues to look at every opportunity carefully.”
Two ATRs leased by Blue Islands impounded at Guernsey Airport.
Deputy Mark Helyar, President of the States’ Trading Supervisory Board, said: "Given the commercial nature, it wouldn’t be appropriate at this stage to give all of the detail about the amount Blue Islands owes to the States of Guernsey.
"However, I can say that the charges are due to operational costs such as landing fees.
"Naturally, I want to do everything possible to ensure Guernsey taxpayers receive the money owed to them. As such, on Saturday we took the decision to detain the two Blue Islands aircraft currently at Guernsey Airport.
"These are aircraft leased by Blue Islands, but under the relevant Guernsey law – which is similar to legislation elsewhere in this regard - such aircraft can be held by authorities in order to assist with recovery of monies owed. We will take all steps within our authority to recover monies owed."
G-ISLM, an ATR 72-500, was leased from Abelo.
G-ISLP, an ATR 72-600, from Jetstream Aviation Capital.
A brief history of Blue Islands
1999: Le Cocq’s Air Link formed to supply perishable goods to Alderney from Bournemouth using Britten Norman Islanders
2002: Passenger services began with scheduled flights between Alderney and Bournemouth with 10,000 carried in the first year.
2003: The trading name of Rockhopper was adopted. 20,000 passengers were carried.
2004: Healthspan Leisure take ownership with Derek Coates as Chairman.
2006: The airline rebranded as Blue Islands which coincided with the delivery of the first British Aerospace Jetstream 32 aircraft. It established itself as a regional carrier, flying 63,500 passengers.
2009: The first ATR aircraft joined the Blue Islands fleet.
2011: New management team introduced with Rob Veron appointed CEO and a vision for an all-ATR fleet.
2013: New Guernsey to Southampton service launched with the introduction of the fleet’s first ATR 72 aircraft.
2014: The migration to ATRs is completed with five aircraft serving the network.
2016: Blue Islands became a Flybe franchise partner, adopting its brand and using its sales channels. It remained an independent airline with its own planes and crew.
2019: 415,000 passengers flew with Blue Islands. It established a ground handling function at Guernsey Airport.
2020: In March Flybe collapsed and Blue Islands begins selling flights through its own systems again. Covid means flights are reduced to essential services only being operating on behalf of the Government of Jersey.
2025: Blue Islands ceases trading.
This story was updated on Monday 17 November to include details of the routes and licencing situation, as well as the States of Guernsey confirming it has impounded aircraft. It was then updated on Tuesday 18 November to include confirmation from Jersey about how much it was owed and for what. And then on Wednesday 19 November with comments from the Economic Development President about her meeting with Loganair.
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