Blue Islands has gone into liquidation owing more than £9 million to the Government of Jersey.
The Government said in a statement it is owed £9.1m by the airline. This includes £500,000 it gave to Blue Islands on 7 November, just seven days before it ceased trading.
Minister for Treasury and Resources Elaine Millar confirmed ministers were aware the airline was facing financial difficulties before it ceased operating on Friday but said it was decided not to invest more public money.
“Very considerable thought was given before ministers took the decision not to provide further financing, subsidy or to take ownership of Blue Islands,” she said.
“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.”
The Government said it knew Blue Islands had been searching for a buyer for a year, but had been unable to find one without further significant taxpayer funding.
Blue Islands’ debt to the Government of Jersey includes £7m on a COVID loan and £400,000 interest on the loan, as well as two additional loans – £1.2m on 12 September and £500,000 on 7 November.
Ministers have also agreed to pay Scottish airline Loganair up to £1.5m to ‘accelerate’ into the Jersey market. The airline announced at the weekend it plans to take over Blue Islands’ former routes.
