26 November 2025
The Government would like to clarify some misunderstandings in recent reporting and
discussion of Blue Islands:
1. The majority of Blue Islands’ outstanding debt to Government is from the Covid loan facility and was drawn between July 2020 and April 2021, A total of £7.0
million of capital and £0.4 million of interest from this loan is outstanding. The loan was
secured and thanks to that security we expect to recover sums to cover the majority of
the money Government has recently provided to Blue Islands.
The Covid loan fulfilled its primary objective and maintained vital air connections during and
immediately after the pandemic For the past five years, Blue Islands has:
- provided lifeline transport for medical patients to Southampton
- carried 650,000 passengers providing important connectivity that has generated
revenues for our visitor economy, as well as continued regional connections
that have added value to the wider economy
- made interest and capital repayments to Government of £3.2 million
2. Blue Islands was up-to-date with its tax and social security payments to Government,
including ITIS. As with many businesses that cease trading, bills that were due to be
paid after the point it ceased operations may not now be paid. This includes the
following balances:
- GST – Nil
- Income Tax – Nil
- ITIS – £36,596.00 (October 2025)
- Social Security contributions – £30,396.82 (October 2025)
The Government will make a claim to the liquidators for all money owing to it. If Blue Islands
made any payments to staff for November before declaring insolvency it is possible there may
be an additional outstanding ITIS and social security contributions for that month.
gov.je