UK-based carrier Eastern Airways is at risk of going into administration as it cancels its flights. The company has filed a notice of intention to appoint an administrator, which marks the beginning of the process. This filing grants a temporary freeze, preventing creditors from taking legal action against the airline for ten days. The Civil Aviation Authority (CAA) has confirmed that Eastern Airways has halted its 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 also previously operated flights to international destinations, including Paris, France. Eastern Airways typically accommodates around 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 not to head to the airport as all Eastern Airways flights are canceled. Affected customers are urged to check the Civil Aviation Authority’s website for the latest updates.
For travelers with bookings tied to packaged holidays, the holiday provider will arrange an alternative flight or provide a full refund. Those with standalone flight bookings may need to secure a new flight themselves in case of cancellations. In such instances, affected passengers may seek compensation through their travel insurance, which might cover scheduled airline failure, or explore options with their debit or credit card provider.
In recent financial reports, Eastern Airways disclosed a net loss of £19.7 million for the 12 months leading to March 2024. The airline’s total debt escalated to £25.97 million, while its profits dwindled to £454,000 compared to £1.55 million in the prior year.
This news follows the recent collapse of budget airline Fly PLAY, with all flights abruptly canceled. The airline advised passengers to check alternative flight options with other carriers, some of which might offer special fares under the circumstances. Additionally, independent travel agency Usher Travel Worldchoice ceased its operations earlier this month.
Other travel companies that have ceased trading this year include Balkan Holidays Ltd, Jetline Travel, and Great Little Escapes LLP. Stay updated on money-saving tips and exclusive offers by subscribing to the Mirror Money newsletter.