Eastern Airways, a regional airline in the UK, has entered administration following the redundancy of the majority of its 330 employees. The airline, founded in 1997 and based at Humberside Airport in North Lincolnshire, provided services across the UK, Ireland, and Europe. It particularly supported routes for the Scottish government to serve remote areas, including the northernmost point of mainland UK.
The airline’s financial difficulties were exacerbated by the termination of a contract to operate services for Dutch airline KLM. This loss resulted in a cost structure deemed unsustainable by its administrators. Jamie Miller from RSM UK Restructuring Advisory, who has been appointed as a joint administrator, noted that a limited number of staff have been retained to maintain the airline’s fleet while exploring options for rescuing its operations.
RSM has indicated that the airline had been operating four aircraft for KLM Cityhopper in Europe, and the cessation of this contract led to increased fixed costs and an unsustainable staffing level. Eastern Airways filed a notice of intention to appoint an administrator on October 27, shortly after the Civil Aviation Authority announced the cancellation of all its flights.
Despite being one of the last remaining regional airlines in the UK, Eastern Airways faced financial challenges that were amplified by the impact of the Covid pandemic and declining passenger numbers. The airline also operated services out of East Midlands, Jersey, Manchester, Newcastle, Newquay, and Southampton, as well as Esbjerg in Denmark. Additionally, it had a significant presence in the North Sea offshore oil and gas sector, connecting cities such as Aberdeen, Humberside, Teesside, and Wick, and providing essential services for residents in these areas.
Source: https://www.bbc.com/news/articles/c1e3jnn32q7o?at_medium=RSS&at_campaign=rss