Regional airline Eastern Airways enters administration
Eastern Airways Enters Administration After Staff Redundancies
UK regional airline Eastern Airways has officially entered administration following the recent redundancy of the majority of its 330 staff members. The airline, which operated in the UK, Ireland, and Europe, provided essential services supported by the Scottish government to residents in the northernmost point of mainland UK.
The decision to enter administration came after a key contract with Dutch airline KLM was terminated, leaving Eastern Airways with a cost base that was deemed unsustainable by administrators. Jamie Miller from RSM UK Restructuring Advisory, the appointed joint administrator, stated that efforts were being made to retain enough staff to maintain the fleet while exploring options to salvage some or all of Eastern’s operations.
RSM indicated that Eastern Airways had been operating four aircraft for KLM Cityhopper in Europe, and the termination of this contract resulted in high fixed overheads and an excess staff base. The company filed a notice of intention to appoint an administrator on 27 October after all flights were canceled by the Civil Aviation Authority.
Established in 1997 and based at Humberside Airport in North Lincolnshire, Eastern Airways is one of the few remaining regional airlines in the UK. However, financial challenges, exacerbated by the Covid-19 pandemic and declining passenger numbers, have led to its current predicament.
In addition to its base at Humberside Airport, Eastern Airways operates out of East Midlands, Jersey, Manchester, Newcastle, Newquay, Southampton, and Esbjerg in Denmark. The airline also plays a crucial role in the North Sea offshore oil and gas industry, connecting key cities such as Aberdeen, Humberside, Teesside, and Wick.
One of Eastern Airways’ vital services is the weekday route between Wick John O’Groats Airport and Aberdeen, essential for residents in the northernmost part of mainland UK. The administrators have expressed openness to potential alternative operators or interested parties looking to acquire the airline’s assets.
