A prominent air carrier has gone into administration, resulting in the suspension of all its flights. Over 3,000 passengers have been impacted due to Royal Air Philippines being compelled to cancel all its commercial flight services. Approximately 3,000 to 4,000 passengers with bookings from January to March have found themselves stranded and are now in the process of seeking refunds and alternate travel arrangements.
CEO Eduardo Novillas of Royal Air Philippines had previously indicated a decline in demand weeks ago, forewarning that the airline would cease commercial flights by January 4 in correspondence to a travel agency prior to the holiday season. This information was reported by Philstar.
Citing notably low interest from key markets, Asian Development Bank economist Jules Hugot highlighted that arrivals from China to the Philippines remained significantly below pre-Covid levels as of early 2025.
On their website, the airline has communicated their efforts to issue refunds and expressed hopes of resuming flights at an undisclosed date in the future, thanking customers for their understanding and patience. Royal Air Philippines, also known simply as Royal Air, is owned by the Cambodia-based Lanmei Group, known as the Lancang-Mekong Group. The carrier, supported by Chinese investments, was established by Li Kun, the former president of Shenzhen Airlines and current chairman, as reported by Express.
Originally launched as a charter operator in 2002, Royal Air transitioned to a low-cost carrier model in 2018 after obtaining its commercial flight license the preceding year. The airline commenced its first passenger service eight years ago and at its peak, operated routes to various international destinations, including Cambodia, China, South Korea, Hong Kong, and Taiwan.
This development follows closely on the heels of a British airline going into liquidation after attempting to raise £20 million. Scottish company Ecojet Airlines, envisioned as the world’s first all-electric airline, was founded in 2023 by entrepreneur Dale Vince, a notable Labour donor and owner of Forest Green Rovers football club.
Despite ambitious plans for long-haul flights and routes in mainland Europe, Ecojet Airlines faced legal action resulting in provisional liquidators being appointed following a petition to wind down the business, as revealed in documents from late January.
Upon launch, Mr. Vince emphasized the importance of transitioning to sustainable, eco-friendly practices in air travel, expressing confidence in achieving net zero emissions. The Herald disclosed that Opus Restructuring’s Paul Dounis and Mark Harper were named as provisional liquidators. Opus confirmed that the voluntary liquidation was initiated by the company’s board.
