Guernsey Frees Blue Islands ATRs After Debt Settlement

Guernsey Ports has reached a settlement with the owners of two ATR aircraft previously operated by Blue Islands, clearing the way for the turboprops to be released after weeks of being stranded on the island. The agreement resolves most of the outstanding debt linked to airport charges following the airline’s sudden collapse in November.

The local government–owned airport operator confirmed that complex negotiations were held with the aircraft owners, supported by legal advisers from Guernsey’s Law Officers. Mark Helyar, president of the Trading Supervisory Board, said the outcome was beneficial for the island after a challenging process.

“It has involved some very complex, detailed discussions with the owners of these aircraft, with expert legal assistance being provided by the Law Officers,” Helyar told the Bailiwick Express. “As a result, we have now reached a settlement that is very positive for the island.”

Helyar declined to disclose the precise amount owed by Blue Islands, citing commercial confidentiality. The Jersey-based regional carrier abruptly ceased operations on November 14, 2025, leaving multiple aircraft grounded across the Channel Islands and disrupting regional air services.

According to ch-aviation data, the two aircraft involved in the Guernsey settlement are ATR72-500 G-ISLM, owned by Abelo Capital Aviation, and ATR72-600 G-ISLP, owned by Jetstream Aviation Capital. Both aircraft remain parked at Guernsey Airport for now, and have not yet departed the island despite the agreement being finalized.

Elsewhere, progress has already been made in repositioning other former Blue Islands aircraft. Three ATR72-500s that had been parked in Jersey were ferried out in early December. G-ISLL was flown to Exeter on December 5, followed by G-ISLN the next day. G-ISLO, which has since been re-registered as 2-ISLO, departed for Copenhagen Kastrup on December 13.

The collapse of Blue Islands continues to have ripple effects beyond the Channel Islands. In the United Kingdom, Skybus has been forced to revise its fleet plans after losing access to a planned ATR72 wet lease from Blue Islands for its new public service obligation route linking Newquay and London Gatwick. In response, Skybus initially wet-leased a Boeing 737-800 from Ascend Airways, and has since operated additional aircraft from Titan Airways, including an Embraer E190 and an Airbus A320-200. It also briefly operated a Boeing 737-300 from Jet2.

Meanwhile, Guernsey’s Transport Licensing Authority has awarded Aurigny Air Services a licence to operate the Guernsey–Jersey route from January 15, 2026. The route was temporarily designated as essential following Blue Islands’ collapse, requiring formal approval. Aurigny and Loganair both applied, but Loganair’s application is still under review.

Related News: https://airguide.info/category/air-travel-business/airline-finance/

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com