ARC NEWS
Blue Islands courted merger with Loganair before collapse
November 28, 2025
Blue Islands' owners sought to sell the airline and held talks with both Loganair and Aurigny over a merger in the months before its collapse in November, the government of Jersey has disclosed. From late 2024 the regional carrier asked to defer money it owed to the government while it "explored a sale or an alternative solution", minister for treasury and resources Elaine Millar said in a 25 November statement. The Channel Island government's involvement with Blue Islands began during the pandemic when it agreed to provide it with a £10 million ($13 million) loan facility, of which £8.5 million was drawn down. Millar describes this loan as having secured "lifeline connectivity during a period of unprecedented disruption" and "allowed Blue Islands to establish itself as an independent airline operating from Jersey". The Covid loan formed part of the ongoing discussions with Blue Islands on its "viability and funding needs", she adds. In June 2025, the government says, Blue Islands approached it as a "key stakeholder", proposing three options for its future ownership: a sale to Loganair, a sale to Aurigny, or "additional government support". Loganair provided the "most compelling proposal submitted by any alternative airline", says Millar, but during the summer it was necessary for the government to provide additional financial support to Blue Islands to ensure it could continue operating. "It was apparent that, without such support, Blue Islands may have ceased trading earlier in the summer, when there were no effective contingency arrangements in place," states Millar. "This would not have been acceptable." Funding of £1.2 million and then a further £0.5 million were therefore provided until a long-term outcome could be confirmed. By 12 November, Millar says, it had become clear that Loganair could start replacement services "very quickly" in the event that Blue Islands could not continue trading. With government support of up to £1.5 million on offer to support the mobilisation of its fleet and services, Loganair committed to accelerate its mobilisation from an original estimate of 30-60 days to within 48h. Millar says that the remaining alternative options were "credible, and offered a potential prospect of recovering some of the government's Covid loan" but required "significant upfront taxpayer money" and carried "considerable financial risk". "There was also no guarantee that we would not be asked for further funds in the future and any form of loan repayment would have taken many years, which reduces its present value," she argues. "In short, we were not prepared to continue using taxpayer money in this way, given the alternative available to us. Again, this was both prudent and sensible financial management." At this stage, the government decided not to pursue the potential options that would require it to provide further financial support for Blue Islands. They also agreed to activate business-continuity arrangements with Loganair to protect air connectivity if the Blue Islands directors concluded that the company had to cease operations. Blue Islands ceased operations on 14 November. The government is a secured creditor of Blue Islands and says it expects it will be able to reclaim a majority of "recent funds" from liquidators. A total of £7 million of capital and £0.4 million of interest is outstanding from its £10 million Covid loan. Other amounts include additional support of £1.2 million provided in September and another £1 million in November. When Blue Islands ceased trading, it had an outstanding balance owed to the Ports of Jersey, relating to airport charges, of £3.2 million, Millar notes.


Irish carrier Emerald turns in first profit
November 27, 2025
Emerald Airlines, which operates flights on behalf of Aer Lingus, has disclosed its first profit since beginning services. The Irish carrier made an operating profit of €9.6 million ($11.1 million) in 2024, reversing 2023's loss of €7.6 million. Revenue rose 21%, supported by a 16% increase in passenger numbers, to 2.2 million, and an improvement of 4.6 percentage points in load factor, which reached 80%. Emerald, which took delivery of its 18th ATR 72-600 in May 2024, lifted capacity 8.8%. It now operates a fleet of 20 turboprops. Chief executive Keith Butler notes that the airline now accounts for over 25% of Aer Lingus departures from Dublin airport and has become a "well established and trusted travel choice". Emerald began flights in early 2022, operating public service obligation (PSO) and franchise services on behalf of IAG-owned Aer Lingus.


Korean Air to build new MRO facility at Incheon
November 27, 2025
Korean Air has committed to building a new maintenance facility at Seoul Incheon International airport that will start operations in 2029. The SkyTeam carrier says that the facility, which will be built on a 69,300sqm site, will accommodate two widebody aircraft and one narrowbody simultaneously and will be capable of airframe inspections, component checks, and complex heavy maintenance and modification work. Korean Air will invest W176 billion ($120 million) to develop the new facility. "From the earliest design phase, we will ensure this new hangar becomes the safest, most advanced, and most exemplary maintenance base—a true stronghold of aviation safety," says the carrier's vice chairman Hak-jae Woo. The carrier adds that it is separately investing W578 billion to build Asia's largest engine maintenance facility on Yeongjong Island in Incheon, and a W1.2 trillion research and development centre for future air mobility in Bucheon.


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