Eastern Airways, a UK regional airline, has entered administration following the redundancy of the majority of its 330 staff members last week.
The carrier operated routes across the UK, Ireland, and Europe, including services supported by the Scottish government for communities in the northernmost regions of mainland UK.
Administrators stated that the airline’s cost base proved “too high to be sustainable” after the termination of a contract to operate services for Dutch airline KLM.
Jamie Miller of RSM UK Restructuring Advisory, the appointed joint administrator, confirmed that a sufficient number of staff have been retained to maintain the fleet while options for rescuing some or all of Eastern’s operations are explored.
Miller added, “We would welcome any interest from potential alternative operators, or those who may have an interest in the underlying assets.”
RSM reported that Eastern Airways had been operating four aircraft for KLM Cityhopper in Europe, but the contract’s termination left the airline with “high fixed overheads and a staff base that has ultimately proved too high to be sustainable.”
The company filed a notice of intention to appoint an administrator on October 27, following the Civil Aviation Authority’s announcement that all of its flights had been cancelled.
Launched in 1997, Eastern Airways is one of the UK’s last remaining regional airlines and is based at Humberside Airport in North Lincolnshire.
However, the airline has faced financial challenges since the COVID-19 pandemic, partly attributed to a decline in passenger numbers.
The airline also operates out of East Midlands, Jersey, Manchester, Newcastle, Newquay, and Southampton, as well as Esbjerg in Denmark.
Eastern Airways has also served the North Sea offshore oil and gas industry, providing flights between key UK cities with a significant presence in the sector, including Aberdeen, Humberside, Teesside, and Wick.
The airline has maintained a weekday service between Wick John O’Groats Airport and Aberdeen, a route considered vital for residents in the northernmost part of mainland UK.
Flight capacity will be cut at major airports as air traffic controllers report issues with fatigue amid staff shortages.
Work on the junction will now continue to spring 2026, the council says.
The interest rate decision was made by the narrowest of margins, meaning all eyes are now on the Bank’s December meeting.
UK Inflation has fallen from record highs but remains above the Bank of England’s 2% target.
Chancellor Rachel Reeves is considering both tax rises and spending cuts in the 26 November Budget.