Atlantic Express, which is owned by Jersey resident Mike Collett, has been sold to a company called Air Task, which intends to lease the aircraft out to other airlines.
Atlantic Express currently flies a twice-daily service between the Island and the north London airport and had announced its intention to add extra flights and bigger aircraft to the route.
Four Jersey-based staff will be affected.
Mr Collett said that he had been involved in the airline business for 37 years and was now hoping to ‘nearly retire’.
‘It is time for me to step back and start doing all the things I want to do before I drop dead,’ he said.
He added that the new owner had originally been anxious to continue the Stansted link and he had been disappointed to hear this week that Air Task had decided just to ‘dry lease’ the airline’s four ATR turboprop aircraft.
‘I am appalled that the company has chosen to drop this part of the business, as it was successful, and I expect the service would have broken even next year and made a profit in 2008.
‘However, because it is an excellent route, I imagine it won’t be long before a new operator starts flying between the Island and Stansted.’