RSM in line for Easter Airways administration
UK carrier Eastern Airways has fallen into administration, leading to the cancellation of all its flights. Administrators from RSM are expected to take charge of the process, while the majority of the firm’s workforce will become redundant.
Founded in 1997, Air Kilroe, trading as Eastern Airways, was a British regional airline headquartered at Humberside Airport in North Lincolnshire, England. The airline operated domestic, international and private charter flights, flying around 1,300,000 passengers per rolling year.
Since the Covid-19 pandemic, Eastern Airways struggled financially, with company filings showing that profits plunged from £1.55 million to £454,000. At the same time, debts ballooned from £4.8 million to £25.97 million. With a number of roots being axed after a disappointing performance – including services from Gibraltar, and Cardiff-to-Paris Orly – several new connections between Newquay and London Southend never materialised.
Worse, Eastern Airways was most recently flying four aircraft for KLM Cityhopper (a subsidiary of KLM-Air France) in Europe, and other UK-based routes under its own name. But the KLM contract was recently terminated, leaving the carrier with high fixed overheads and a staff base larger than required.
As a result, the directors of Eastern Airways have filed a notice of intention to appoint joint administrators. Jamie Miller and Gareth Harris of RSM’s restructuring advisory wing are expected to shortly be appointed joint administrators,
Miller, a partner at RSM and proposed joint administrator, said, "This has been a very fast-moving situation but due to circumstances outside their control, and without a viable solution, the directors have had no choice but to cease day to day operations. Sadly, a majority of the 330 staff have had to be made redundant by Eastern.
"Sufficient staff have been retained to provide ongoing service and assistance to Eastern’s valued customers, and to continue maintenance of the aircraft. For those staff not retained, we will provide every assistance to them to ensure they successfully claim their entitlements from the Redundancy Payments Service. We would welcome any interest from potential alternative operators, or those who may have an interest in the underlying assets."
Destinations the airline flew to included Aberdeen, Humberside, London Gatwick, Newquay, Teesside International and Wick. Among those most affected by Easter Airway’s closure will be business travellers and professional sports teams , who rely on its domestic routes to reach Premier League fixtures.
