Airport operator owed £3.2m by collapsed airline

Gemma DaubeneyBBC News, Jersey
BBC A Blue Islands blue and white plane on a cream runway, with grass and blue sky behind.BBC
Ports of Jersey has confirmed Blue Islands owes it more than £3m

The recently-collapsed Blue Islands airline owes Ports of Jersey more than £3.2m, the airport and harbour operator has confirmed.

Ports said the airline, which went into liquidation on 17 November, has built up the debt in unpaid landing charges, as well as costs from other fees and services.

The firm already owes Jersey's government a separate £9.1m for unpaid loans, including £500,000 lent a week before the company ceased trading.

Backbench politicians have criticised government decisions to support Blue Islands shortly before its collapse.

Treasury Minister Elaine Millar said in a statement the airline had been working on a "sale process" for the past year that had been supported by deferred repayments and loans.

'Facing challenges'

Speaking on Sunday, CEO of Ports of Jersey Matt Thomas said it was "well-known" that Blue Islands had been vulnerable.

He said: "It's a smaller airline, they only have five planes."

He said the timing of the collapse was a surprise but he knew the airline had faced challenges.

"There are lot of other airlines facing those challenges," he said.

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