Tourism Minister Adrian Earnshaw says the effect of the collapse of EuroManx on the tourism industry and the Island's reputation abroad, is yet to be seen.
But of more immediate concern is the plight of TT fans who have booked flights with the failed airline.
Mr Earnshaw (picture) says the demise of EuroManx has come at a bad time, but tough competition for passengers meant ultimately one player had to go:
Boss of DESC urges staff to “speak up” during Tynwald whistleblowing hearing
Graham Kinrade tells committee culture change takes time but says raising concerns is welcomed across government
Manxman's arrival into Douglas delayed due to weather
The vessel left Heysham at 1.40am but isn't expected to arrive in the capital until 8am
"We are not going to discuss terms and conditions in a pay negotiation."
Unite members have entered a third round of strike action against bus vannin
Government in talks with Northern Ireland over fishing concerns
'Operational challenges' acknowledged but visa and immigration requirements remain unchanged, says gov't
Musical groups to perform piece examining 'horrors of war' an annual concert
Choral Society and Symphony Orchestra team up for performance later this month