Blue Islands announced on Friday it had ceased trading

Airlines have stepped in to offer "rescue flights" for Blue Islands passengers after the company's collapse.

The Jersey-based operator, which employed about 100 staff, announced on Friday it had ceased trading and cancelled all bookings.

Carl Walker, chairman of the Jersey Consumer Council, said he understood more than 1,000 passengers had been displaced and advice for affected customers has been issued.

Aurigny and Loganair have said they are putting on extra flights to help Blue Islands customers.

Loganair said it was putting on flights from Jersey to Guernsey, Exeter, Bristol and Southampton along with Guernsey to Southampton from Sunday, while Aurigny has added flights for the Southampton to Guernsey and Guernsey to Jersey routes on Saturday and "initially until Wednesday".

Both airlines said special rescue fares were being put on the flights to assist passengers who needed to travel on any of the affected routes.

A Loganair statement said: "We understand this will be a worrying time for those hoping to travel to and from Jersey and in response we're starting operations from Sunday 16 November."

An Aurigny spokesperson said the airline was "deeply saddened" about Blue Islands ceasing trading and had taken "immediate action to assist Blue Islands customers across the Channel Islands".

Luke Farajallah, Loganair chief executive, said Blue Islands had played a "vital role in the UK's regional aviation market".

"This is another sad day for regional aviation, coming so soon after the news about Eastern Airways," he said.

Mr Farajallah said Loganair had acted immediately to introduce flights to and from Jersey and opened up the possibility of the airline being a long-term operator for the island. In a statement discussing the extra flights, he said: "This will then lead to establishing a new permanent operating base in Jersey."

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A statement from Blue Islands said it had been told on Friday that Jersey's government would be unable to provide further support. A spokesperson said: "This has meant that we now need to suspend flying immediately whilst we consider the options available and how we can help our customers, staff and stakeholders."

Blue Islands borrowed £8.5m from the Government of Jersey to help it secure its services during the Covid-19 pandemic. A report in August revealed the outstanding capital balance in June was £7m.

Jersey's Minister for Treasury and Resources, Elaine Millar, said it was very sad news for the island, but there was "a limit" on how much money the government could subsidise an airline.

Ports of Jersey said it was saddened by the news: "Blue Islands has been a valued operator at Jersey Airport for many years. We recognise that this news will come as a disappointment to its passengers, employees, and the wider island community," a statement said.

Guernsey Ports managing director Ross Coppolo said he hoped rescue flights with airlines such as Aurigny and Loganair would help minimise disruption. "Our priority now is passengers who are affected over the coming days," he said.

Southampton Airport advised passengers to not travel to the airport and visit Blue Island's website for more information. "It is with regret we have been notified that Blue Islands has suspended trading, meaning all flights it operated to and from Southampton have been cancelled," the airport said.

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