Eastern Airways, a UK airline, is on the verge of entering administration, leading to the cancellation of its flights. The airline has initiated the process by filing a notice of intention to appoint an administrator, which serves as a legal indication of its impending administration status. This action triggers a temporary freeze preventing creditors from pursuing legal actions against the company for ten days. The Civil Aviation Authority (CAA) has confirmed the suspension of Eastern Airways’ operations.
Established in 1997, Eastern Airways operates domestic flights to various UK airports such as Aberdeen, Humberside, London Gatwick, Newquay, Teesside International, and Wick. In the past, the airline also served international destinations like Paris, France, catering to approximately 1.3 million passengers annually. Selina Chadha, Consumer & Markets Director at the CAA, advised passengers against heading to the airport for Eastern Airways flights, emphasizing that all flights have been grounded.
Passengers affected by the airline’s situation are encouraged to visit the Civil Aviation Authority’s website for the latest updates. For travelers with bookings as part of a package holiday, alternative flight arrangements or full refunds will be facilitated by the holiday provider. In cases where flights are not part of a package holiday, passengers may need to cover the costs of new flights if cancellations occur. Travel insurance coverage for scheduled airline failure or potential claims through debit/credit card providers are suggested avenues for compensation.
Eastern Airways recently reported a net loss of £19.7 million for the fiscal year ending in March 2024, with a total debt increase to £25.97 million. Profits dwindled to £454,000 from £1.55 million in the previous year. This development follows the collapse of budget carrier Fly PLAY into administration last month, resulting in immediate flight cancellations by the Icelandic airline. Over the past year, several travel entities including Balkan Holidays Ltd, Jetline Travel, and Great Little Escapes LLP have also ceased operations.
