Regional airline Eastern Airways goes into administration



UK regional airline Eastern Airways has entered administration after the majority of its 330 staff were made redundant last week.

The airline had operated across the UK, Ireland and Europe, and ran services supported by the Scottish government for people in the northernmost point of mainland UK. However, after a contract to operate services for Dutch airline KLM was ended, the carrier had been left with a cost base that was "too high to be sustainable", the administrators said.

Jamie Miller from RSM UK Restructuring Advisory, who has been appointed joint administrator, said sufficient staff had been retained to maintain the fleet while they sought to rescue some or all of Eastern's operations. He added: "We would welcome any interest from potential alternative operators, or those who may have an interest in the underlying assets."

RSM said Eastern Airways had been operating four aircraft for KLM Cityhopper in Europe, but, when this contract was terminated, it had left Eastern with "high fixed overheads and a staff base that has ultimately proved too high to be sustainable".

The company had filed a notice of intention to appoint an administrator on 27 October after the Civil Aviation Authority announced all of its flights had been cancelled.

Launched in 1997, Eastern is one of the UK's last remaining regional airlines and is based at Humberside Airport in North Lincolnshire. But the airline has faced financial challenges since the Covid pandemic, in part due to falling passenger numbers.

It also operates out of East Midlands, Jersey, Manchester, Newcastle, Newquay and Southampton, as well as Esbjerg in Denmark. It has been an operator in the North Sea offshore oil and gas industry, flying between UK cities with a significant presence in the sector such as Aberdeen, Humberside, Teesside and Wick. It has run a weekday service between Wick John O'Groats Airport and Aberdeen, which is seen as vital for people living in the most northerly point on mainland UK.

UK regional airline Eastern Airways has suspended its operations and is on the brink of collapse, putting hundreds of jobs at risk.

The company filed a notice of intention to appoint an administrator on Monday after several flights were cancelled, including between Teesside and Aberdeen.

The airline has operated across the UK, Ireland and Europe, and runs services supported by the Scottish government for people in the northernmost point of mainland UK.

The UK Civil Aviation Authority (CAA) confirmed the airline has suspended operations and all of its flights had been cancelled.

A notice to appoint administrators is a formal step that gives the business up to 10 days of legal protection from creditors while it explores rescue options, restructures, or prepares for insolvency proceedings.

Airport flight departure boards showed Eastern Airways flights had been cancelled, including a 07:00 GMT flight from Newquay to London Gatwick, 18:15 flight from Teesside to Aberdeen, 14:30 from Aberdeen to Wick and 16:45 from Aberdeen to Teesside.

Selina Chadha, CAA consumer and markets director, urged Eastern's customers to visit the regulator's website for more information.  "We urge passengers planning to fly with this airline not to go to the airport as all Eastern Airways flights are cancelled," she said.

The CAA said people who had flights booked with the airline should make other travel arrangements via rail, coach or other airlines.

London North and Eastern Railway, Scotrail, TransPennine Express and Northern Railway would offer free standard class travel to the airline's staff and customers on Tuesday and Wednesday on suitable routes, the regulator added.

Scottish regional airline Loganair said it was offering stranded passengers special airfares in on flights between Aberdeen and Kirkwall or Sumburgh for departures until 30 October.

Passengers who had booked flights directly with the airline via credit, debit or charge card should contact their card issuer as they could be able to make a claim for a charge back, the CAA said.

Eastern Airways has been approached for comment.

Eastern is one of the UK's last remaining regional airlines and is based at Humberside Airport in North Lincolnshire. But the airline, which was launched in 1997, faced financial challenges following the Covid pandemic in part due to falling passenger numbers. It also operates out of East Midlands, Jersey, Manchester, Newcastle, Newquay and Southampton, as well as Esbjerg in Denmark.

It has been an operator in the North Sea offshore oil and gas industry, flying between UK cities with a significant presence in the sector such as Aberdeen, Humberside, Teesside and Wick. It has run a weekday service between Wick John O'Groats Airport and Aberdeen, which is seen as vital for people living in the most northerly point on mainland UK.

The branch line itself, Newquay aside, doesn't serve anything other than large villages.

So I'm struggling see where Newquay Cornwall Airport will benefit much from a more frequent rail service.

I suspect a more frequent rail service to Newquay will benefit Newquay Cornwall airport given that it's only 15 mins from the station and may indeed have been a factor in this new route being launched......

Yes and no.  It’s a zombie franchise that is doubling the frequency from Par to Newquay from May, and therefore offering up many more options to and from London.

Providing the crew can be rustled up for them of course.

One flight a day is hardly going to frighten GWR?

Ideal for east London. Not sure what transport links are like at Southend airport, but trains from Southend to east London are very regular, 4 an hour from memory?.