Blue Islands failure raises alarms on UK regional airline viability

The Channel Islands–based regional airline served the British Isles for two decades. On November 14, it abruptly shut down operations, grounding its five-aircraft ATR-72 fleet and leaving roughly 100 employees without work.

It is consequently the second regional carrier to fold , following Eastern Airways’ shutdown on 28 October. The decision came following the Jersey Council of Ministers decision not to provide Blue Islands any more lifeline funding – little more than a week after they had approved a separate, significant cash injection rumored to be around £1.5m, according to the local newspaper Jersey Evening Post.

The Jersey-headquartered airline connected Jersey to Bristol, Exeter, Newcastle, Norwich and Southampton as well as to Dublin and Paris, and operated Guernsey–Southampton flights along with the inter-island shuttle between Guernsey and Jersey. Passengers visiting the company’s website were greeted with a stark notice announcing its suspension of trading.

Jersey’s Minister for Treasury and Resources, Elaine Millar, stressed meanwhile the island’s urgency in restoring air links. “Air connectivity is vital for our Island,” she said, adding that contingency plans and government support for displaced employees are already in place. “Government is working with an alternative airline to ensure that Jersey has reliable and sustainable air links for the long term.”

Loganair and Aurigny moved in within hours
Loganair, the Glasgow-based regional airline, started flying to and from Jersey as early as Sunday, less than 48 hours after Blue Islands collapsed. The carrier is offering £80 one-way “rescue fares” and said it aims to establish a permanent operating base on the island.

“This is another sad day for regional aviation,” Loganair CEO Luke Farajallah said. “For almost two decades, the Blue Islands brand has played a vital role… We acted immediately to introduce flights and to reassure passengers at an unsettling time.”

Aurigny, Guernsey’s flag carrier, activated extra flights between Guernsey and Southampton and increased inter-island services through 18 November. CEO Nico Bezuidenhout said the airline’s rapid response reflects its mission to serve Channel Islands residents and “get travelers home.”

“Our team will be working through the weekend to protect aviation interests in the Channel Islands,” he said.

Jersey Airport’s operations director, Ashley Maggs, said the closure was “disheartening” but emphasized that crews worked through the night to prepare replacement service. The airport has been coordinating closely with Loganair to ensure operations are ready.

Blue Islands collapse prove however that surviving as a regional carrier in Europe is turning increasingly difficult – particularly since the sanitary crisis of Covid-19.