UK-based airline Eastern Airways is reportedly facing the possibility of entering administration. According to a report from The Sun, the company has filed a notice of intention to appoint an administrator, a legal step indicating potential administration proceedings.
This notice initiates a temporary freeze preventing creditors from taking legal actions against the business for a period of ten days. Established in 1997, Eastern Airways operates flights to various domestic airports in the UK such as Aberdeen, Humberside, London Gatwick, Newquay, Teesside International, and Wick. It previously served international routes including Paris, France, with an annual passenger volume of approximately 1.3 million.
The airline disclosed a net loss of £19.7 million for the fiscal year ending in March 2024, with its total debt escalating to £25.97 million. Profit figures also declined to £454,000 from £1.55 million in the previous year. In the event of a collapse, all flights are expected to be canceled. Customers with bookings tied to packaged holidays will either be rebooked on alternative flights or provided with full refunds by their holiday providers.
For non-packaged holiday bookings, passengers may need to secure new flights if cancellations occur. In such cases, travelers could potentially seek compensation through their travel insurance policies if they include coverage for scheduled airline failure.
Following the recent collapse of budget airline Fly PLAY and the closure of independent travel agency Usher Travel Worldchoice, the travel industry has faced significant challenges. The closure of multiple travel entities, including Balkan Holidays Ltd, Jetline Travel, and Great Little Escapes LLP, underscores the ongoing difficulties within the sector. Stay informed with money-saving tips and exclusive offers by subscribing to the Mirror Money newsletter.
