Collapsed airline still owes government £7.3m

The Jersey government is continuing to recover millions of pounds in funds owed after an airline went into liquidation last year.

Blue Islands announced it had suspended trading and cancelled flights in November 2025, before entering liquidation while owing the government £9.1m.

As of 30 June, the outstanding balance of loans had fallen to £7,382,822 following receipt of £1,773,706 from the liquidator.

Revealing the figures in a Finance Law Delegation Report, the minister for treasury and resources said work was "continuing to recover further funds from the defaulted loan holder".

Deputy Elaine Millar, the former minister for treasury and resources, previously faced questions about the taxpayers' money that was lent to the company before it ceased trading.

She said she believed the government would be able to get back some of the funds loaned.

She noted the council of ministers agreed the government should not pursue the options that would require them to provide further financial support for Blue Islands.

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