The Government of Jersey has released more information about the debt position of the local airline, which collapsed on Friday night after Jersey’s top politicians decided to turn off financial support.
It has now started voluntary liquidation proceedings, being managed by EY. The liquidators told staff on Monday that they no longer had jobs and would not be paid for November.
It has retained just 12 staff to support the liquidators in the orderly wind-down of the company.
Guernsey’s States has declined to reveal how much the airline owed in operational fees and charges, but it is understood to be in the tens or hundreds of thousands of pounds.
The States has seized two ATR-72 aircraft, being leased to Blue Islands, and will not agree to release them until the debt has been resolved.
It has said it ‘will take all steps within our authority to recover monies owed’.
Officials from Loganair flew to Guernsey on Tuesday to meet States officials about the licensing process for Southampton flights and the decision to introduce licensing on the inter-island route from the middle of January.
Loganair had been ready to take over both routes following its agreement to assist Jersey after it refused to give Blue Islands any further funding.
Addressing this issue at a Jersey Hospitality Association lunch in Jersey on Tuesday, Economic Development Minister Kirsten Morel said he hoped that this was not a move to protect the market position of Aurigny.
He added that he was confident that the talks between Guernsey and Loganair would be constructive and that ‘common sense would prevail’.
The States of Guernsey described the meeting between Economic Development president Sasha Kazantseva-Miller and Loganair CEO Luke Farajallah as ‘an opportunity to learn about potential ways the island might work with Loganair going forwards on a variety of matters’.
‘The meeting was constructive and it was very useful to discuss the opportunities Loganair sees in the Bailiwick,’ said Deputy Kazantseva-Miller.
‘It is vital that we protect, and improve, our air links in Guernsey, including building greater resilience, and so the committee continues to look at every opportunity carefully.’
The UK Civil Aviation Authority has also published a Negative Response Letter confirming the company’s suspension of operations and explaining how passengers with bookings could get their money back.
The letter states that Blue Islands was not covered by the authority’s ATOL protection and suggests that if customers booked directly with the airline using a credit card, they may be protected and should contact their card issuer.
Passengers who paid by debit card have been advised to contact their card issuer for advice about making a claim under ‘charge back rules’.
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