Eastern Airways, a UK airline, is facing imminent administration leading to flight cancellations. The company has lodged a notice of intention to appoint an administrator, a legal step signaling the company’s impending entry into administration. This move provides a temporary freeze preventing creditors from pursuing legal actions against the business for ten days. The Civil Aviation Authority (CAA) has confirmed the suspension of Eastern Airways operations.
Established in 1997, Eastern Airways operates flights to various UK domestic airports such as Aberdeen, Humberside, London Gatwick, Newquay, Teesside International, and Wick. Previously, the airline also served international destinations like Paris, France, catering to approximately 1.3 million passengers annually. The Mirror has reached out to Eastern Airways for comments.
Selina Chadha, Consumer & Markets Director at the Civil Aviation Authority, advised passengers not to visit airports as all Eastern Airways flights stand canceled. Affected customers are directed to the Civil Aviation Authority’s website for the latest updates.
Passengers with bookings as part of a packaged holiday will be offered alternative flights or full refunds by their holiday provider. Those with non-packaged holiday bookings may need to bear the cost of new flights in case of cancellations. Travel insurance covering scheduled airline failure could assist in claims, or recourse may be available through debit or credit card providers.
In financial terms, Eastern Airways reported a net loss of £19.7 million for the 12 months ending March 2024. The airline’s total debt increased to £25.97 million, while profits declined to £454,000 from £1.55 million in the previous year.
The airline’s situation follows the recent collapse of budget Icelandic carrier Fly PLAY, resulting in immediate flight cancellations. Usher Travel Worldchoice, an independent travel agent, also ceased trading this month. Director Gavin Morton, a 35-year veteran of the business’s 60-year trading history, expressed profound sadness over the decision to close.
Additionally, Balkan Holidays Ltd, Jetline Travel, and Great Little Escapes LLP have shuttered operations this year. For more money-saving tips and exclusive offers, sign up for the Mirror Money newsletter to receive updates directly in your inbox.