Loganair steps in to run Jersey services after Blue Islands collapse

Leading regional airline Loganair (LM/LOG) has confirmed it plans to step in and replace all Blue Islands routes that previosuly operated from Jersey.

Glasgow-based Loganair, along with Aurigny Air Services, has already stepped in to provide contigency flights ro rescue passengers displaced by the sudden collapse of Blue Islands but the Loganair’s CEO Luke Farajallah has said that he wants the airline to ramp up to a fiull schedule by March 2026.

Mr Farajallah confirmed that final preperations were being made to operate flights from Jersey to Guernsey, Exeter, Bristol and Southampton and they are also considering taking on routes to East Midlands and Leeds Bradford which were part of Blue Islands summer schedule.

Staff were also reassured as Loganair aims to take on as many Blue Islands staff as possible for what will be its new Jersey base. Mr Farajallah said: “We’re coming, there will be another airline established very quickly in Jersey,”

He added: “We’re looking forward to working with the Government of Jersey and to demonstrate to the people of Jersey what a strong, reliable, dependable airline can look like.”

The Government of Jersey, which is paying for some of the contigency flights, welcomed the news saying: “We thank Loganair for their swift response and commitment to supporting Jersey’s connectivity at this critical time.”

Blue Islands collapsed on friday and it has emerged that the airline still owed the majority of an £8.5 million loan given to it by the Government of Jersey during the COVID-19 pandemic and while the Government said it had not withdrawn support for the airline, Treasury officials said there was a limit on how much an airline could be subsidised.

Treasury Minister, Deputy Elaine Millar said: “We’ve been speaking to Blue Islands for a long time and we’ve been looking at numerous options.” adding “Any employees who are affected – they will get very quick support through employment, social security and housing and they can contact them in terms of what funding that will be available to them so they shouldn’t lose out in terms of any outstanding wages or redundancy.”

Blue Islands had a fleet of 5 ATR72 aircraft, all of which were leased. Three of these are currently parked at Jersey with the remaining two parked at Guersney.