Blue Islands, a small airline operating in Jersey, entered liquidation on November 17, 2025. The airline accrued significant debt, totaling £9.1 million owed to the Jersey government due to unpaid loans, including a £500,000 loan made just a week before the airline ceased operations. Additionally, Ports of Jersey confirmed it is owed £3.2 million from Blue Islands in unpaid landing fees and other charges. The financial struggles of the airline were known to the Jersey government for some time. Despite ongoing discussions about potential financial support, ministers decided against further investments, arguing that taxpayers' money should not be used to prop up failing businesses. Instead, they opted to support Scottish airline Loganair with up to £1.5 million to quickly fill the service gap left by Blue Islands ceasing trading. This decision was framed as securing the continued connectivity of the region. Blue Islands had previously received substantial financial backing from the government during the COVID-19 pandemic in mid-2020, which included an £8.5 million loan intended to maintain crucial travel routes, including medical transport for patients. Over time, the airline managed to repay £3.2 million; however, the remaining debt indicated with interest was around £7.4 million. The eventual decision to allow Blue Islands to liquidate, given its inability to secure a buyer despite a year-long search, highlighted the challenges facing the airline industry, particularly smaller carriers. Critics noted that prior support decisions were made shortly before the airline’s ultimate collapse, raising concerns about the government’s oversight and decision-making regarding financial aid and the sustainability of the region's aviation services.