Blue Islands collapse sparks Loganair takeover: Jobs and flights saved for channel Islands

The sudden collapse of Channel Islands carrier Blue Islands left hundreds of travelers stranded and nearly 100 staff members out of work. In a swift response, Scottish airline Loganair has stepped in to fill the gap, pledging to provide employment opportunities for those affected and to restore key flight routes connecting the Channel Islands to the UK.

Blue Islands, which employed around 110 people, announced last Friday that it had suspended all operations, leaving thousands of passengers with canceled flights to destinations including Jersey, Guernsey, Exeter, and Southampton. The abrupt shutdown followed mounting financial pressures and unsuccessful attempts to sell the business, prompting the appointment of joint liquidators from Ernst & Young.

Within 24 hours, Aurigny, the Bailiwick-owned airline, began emergency flights, followed by Loganair the next day. Two Loganair aircraft touched down in Jersey within 36 hours of the announcement, ensuring vital air links remained operational. The Government of Jersey reportedly covered contingency costs to secure these services, although the exact figures were not disclosed.

Loganair CEO Luke Farajallah emphasized the company’s commitment to staffing the new routes and providing opportunities for former Blue Islands employees. “We hope that those affected by the closure can transition to Loganair,” Farajallah said. “We will need experienced crew to operate these essential services, and our recruitment days in St Helier are designed to make that possible.” He added that Loganair aims to resume a full flight schedule by March, gradually expanding operations after the initial rescue efforts.

The CEO reassured island residents about the airline’s financial stability. “We have no government or bank debt. Our balance sheet is clean, and we carefully evaluate all investments to ensure long-term sustainability,” he stated. Loganair has also completed licensing procedures for the Guernsey–Southampton route and is awaiting final approval from local authorities.

Ports of Jersey CEO Matt Thomas described the past few days as “a rollercoaster” but praised the coordinated response. He asked residents for patience during the transition period, acknowledging that initial operations might be “a bit clunky” as the new airline establishes itself. “The priority is providing alternative options for travelers and ensuring continuity for the coming weeks,” Thomas explained.

In Guernsey, tourism and hospitality stakeholders expressed concern about relying on a single airline. Alan Sillett, president of the Guernsey Hospitality Association, emphasized that competition and fair pricing are crucial for sustaining air travel demand. Aurigny and Loganair are now operating inter-island routes, with the potential for additional airlines to serve specific connections, provided coordination ensures efficiency.

Blue Islands’ collapse has left 98 staff redundant, while a small team remains to assist with the winding-down process. The airline’s fleet of five leased ATR aircraft has also been impacted, with two planes detained over unpaid airport fees. Liquidators are now contacting creditors and providing guidance for affected passengers to claim refunds through banks, payment providers, or travel agents.

As the Channel Islands adapt to the sudden change in air travel services, Loganair’s swift intervention promises continuity for passengers and hope for former Blue Islands employees. With a focus on financial prudence and operational reliability, the airline is positioning itself as a new mainstay for the islands’ skies.

FAQ

Q1: What happened to Blue Islands?
Blue Islands ceased operations due to mounting debts and unsuccessful sale attempts. Most staff were laid off, and flights were canceled.

Q2: Which airlines are covering Blue Islands’ routes?
Aurigny and Loganair have stepped in to operate key routes between the Channel Islands and the UK.

Q3: Will former Blue Islands staff be hired by Loganair?
Loganair has expressed interest in employing former Blue Islands crew and is holding recruitment days in St Helier.

Q4: Are passengers eligible for refunds?
Yes. Passengers can seek refunds via the bank or payment method used or through travel agents if booked via a third party.

Q5: Are the new Loganair flights financially secure?
Yes. Loganair operates with a clean balance sheet, no government or bank debt, and a conservative investment approach.