Eastern Airways has abruptly suspended all its operations, grounding its entire fleet and leaving countless passengers stranded. The UK domestic airline, which has been in operation for 28 years, filed a notice of intention to appoint an administrator on October 27, 2023, effectively marking the end of its flight services.
The situation escalated quickly, as ticket sales were reportedly active until noon on the day of the suspension. This has raised serious concerns about the airline’s practices, particularly regarding its decision to continue selling tickets while facing imminent collapse. Passengers who purchased tickets found themselves with no flights to board, prompting the Civil Aviation Authority (CAA) to issue a stark warning. Selina Chadha, the CAA’s Consumer and Markets Director, advised travelers to avoid heading to the airport, confirming that all flights were canceled.
The airline’s abrupt end has left not only passengers in limbo but also office staff, cabin crew, and pilots facing potential job losses. Insiders have expressed worries that employees may not receive their paychecks at the end of October, adding to the mounting distress.
The airline’s history is notable; it began its operations in 1997 with a single flight between Humberside and Aberdeen, primarily serving the oil industry. Over the years, Eastern Airways grew to carry around 1.3 million passengers annually, claiming to be the top provider of charter flights for sports teams in Europe, including several Premier League clubs. Despite its growth, the airline was facing significant financial challenges, reporting a net loss of £19.7 million for the year ending in March 2024.
The recent legal filing reveals that the company is likely “unable to pay its debts,” contradicting claims made in its Strategic Report from December 2022 that it was “well-balanced” to handle risks. An aviation expert suggested that the downfall may have stemmed from a problematic contract with KLM, which ended on October 5, just weeks before the suspension.
For those holding tickets, the outlook is bleak. Experts indicate that passengers without specific scheduled airline failure insurance will likely not receive refunds. Instead, they are advised to file claims with their credit or debit card providers.
In a small effort to assist those left stranded on October 28 and 29, some train operators, including LNER and TransPennine Express, offered free travel for anyone presenting an Eastern Airways boarding pass or employee ID. This gesture provided some relief for travelers trying to return home.
The collapse of Eastern Airways is part of a troubling trend for regional carriers in the UK, following the demise of others like BMI Regional and Flybe. The fallout from this airline’s closure will likely impact several airports, including Teesside, Wick, and Newquay, which relied heavily on Eastern Airways for their busiest domestic routes.
