Eastern Airways, a UK airline, is facing imminent collapse and has grounded its flights. The company has initiated the process to appoint an administrator, signaling its impending entry into administration. This action provides a temporary reprieve, preventing creditors from pursuing legal action against the airline for ten days. The Civil Aviation Authority (CAA) has verified the suspension of Eastern Airways’ operations.
Established in 1997, Eastern Airways serves various domestic airports in the UK such as Aberdeen, Humberside, London Gatwick, Newquay, Teesside International, and Wick. The airline previously operated flights to international destinations, including Paris, France, and accommodates approximately 1.3 million passengers annually. The Mirror has reached out to Eastern Airways for a statement.
Selina Chadha, Consumer & Markets Director at the Civil Aviation Authority, advised passengers against going to the airport for Eastern Airways flights, as all services are canceled. Affected customers are urged to visit the Civil Aviation Authority’s website for the latest updates.
If your booking is part of a packaged holiday, the holiday provider will arrange an alternative flight or offer a full refund. For non-package holiday bookings, passengers may need to secure a new flight if their travel plans are disrupted. Travel insurance with scheduled airline failure coverage or potential claims through debit or credit card providers could offer recourse.
Eastern Airways recorded a net loss of £19.7 million for the year ending March 2024. Total debt surged to £25.97 million, while profits decreased to £454,000 from £1.55 million in the prior year. This development follows the recent collapse of budget Icelandic airline Fly PLAY, which ceased operations, prompting the cancellation of all flights.
Additionally, Usher Travel Worldchoice, an independent travel agent, ceased trading earlier this month. The company’s Director, Gavin Morton, expressed deep sorrow over the closure after decades of service. Other travel entities like Balkan Holidays Ltd, Jetline Travel, and Great Little Escapes LLP have also shuttered operations this year. For exclusive money-saving tips and deals, subscribe to the Mirror Money newsletter.