Guernsey Ports, the local government-owned operator of Guernsey airport, has reached an agreement with the owners of two ATR72s formerly operated by Blue Islands (SI, Jersey) to settle most of the debt and release the turboprops.

"It has involved some very complex, detailed discussions with the owners of these aircraft, with expert legal assistance being provided by the Law Officers [a local authority]. As a result, we have now reached a settlement that is very positive for the island," the president of the Trading Supervisory Board, Mark Helyar, told the Bailiwick Express daily.

Helyar, who supervises the airport as a member of the local government, previously refused to disclose the exact amount owed by the bankrupt airline, citing commercial confidentiality.

ch-aviation data shows that ATR72-500 G-ISLM (msn 762) is owned by Abelo Capital Aviation, and ATR72-600 G-ISLP (msn 1167) by Jetstream Aviation Capital. Both aircraft have remained parked in Guernsey since the airline's abrupt cessation of operations on November 14, 2025, and have yet to leave the island after the settlement.

Meanwhile, three other ATR72-500s formerly operated by Blue Islands have already been repositioned out of Jersey, where they were parked in mid-November. G-ISLL (msn 696) was ferried to Exeter on December 5, G-ISLN (msn 884) followed the day after, and G-ISLO (msn 778) - now already reregistered as 2-ISLO - flew to Copenhagen Kastrup on December 13.

In the United Kingdom, the collapse of Blue Islands continues to affect Skybus (United Kingdom) (IOS, Land's End), which planned to wet-lease an ATR72 from the airline for its new PSO route from Newquay to London Gatwick (secured after the collapse of another regional carrier, Eastern Airways). Skybus has reacted by initially wet-leasing a B737-800 from Ascend Airways, and has since also leased an E190 and an A320-200 from Titan Airways, and briefly, also a B737-300 from Jet2 (United Kingdom).

Route reallocated

Meanwhile, the States of Guernsey's Transport Licensing Authority has awarded local carrier Aurigny Air Services (GR, Guernsey) a route licence for the Guernsey-Jersey service starting on January 15, 2026.

The route is currently not deemed essential and can be served by any airline with no special permits. In the wake of Blue Islands' collapse, both Aurigny and Loganair entered the market. However, the States of Guernsey subsequently decided to designate the route as essential, requiring airlines to obtain a licence. Both carriers applied, but Loganair's application has not yet been considered. The government said it is processing the applications in the order of them being filed.

Loganair also applied for a licence to serve the essential Guernsey-Southampton route, where it does not face competition.