The Government of Jersey lent Blue Islands £8.5m in mid-2020 to secure “lifeline connectivity during a period of unprecedented disruption” – including transport for medical patients to Southampton.
Ministers said that the airline had since made interest and capital repayments to government of £3.2m.
But, including interest, that left £7.4m outstanding.
And it has now emerged that ministers made two additional loan payments to Blue Islands, including £1.2m on 12 September, and £500,000 on 7 November – seven days before it ceased trading.
The government said as a “secured creditor” it expected “some funds may be recoverable”, although this would be subject to the liquidation process.
The two most recent payments were made as the airline…