Jersey-based regional airline Blue Islands has ceased trading and announced suspension for all flights, collapsing after the Jersey government confirmed it could no longer provide financial aid.
With the sudden collapse announced on Friday, November 14, more than 1,000 passengers stranded and around 100 staff out of work.
Competitor airlines Aurigny and Loganair have swiftly stepped in to operate “rescue flights” on key routes previously served by Blue Islands.
Responding to the crisis, other airlines stepped to rescue passengers. Loganair announced new services from Jersey to Guernsey, Exeter, Bristol, and Southampton, starting from Sunday, November 16.
Similarly, Aurigny has added flights between Southampton, Guernsey, and Jersey, with both carriers providing special rescue fares to provide assistance to displaced passengers.
The collapse showcases the fragile state of regional air connectivity. Blue Islands served as a significant transport link for the Channel Islands, and its failure creates a “diabolical situation” for consumers and businesses, according to Carl Walker, chairman of the Jersey Consumer Council.
Post Covid-19, airlines struggled financially, due to which it also received an £8.5 million loan from the Government of Jersey.
A report in August unveiled £7 million was still outstanding. The Treasury Minister, Elaine Miller expressed sadness but stated that there was a “limit” to how much the government can subsidize a private business.
Ports in Jersey and Guernsey are providing assistance to affected passengers, with industry leaders urging the immediate priority is to lessen travel disruption across the region.