Eastern Airways ceases operations, leaving UK regions facing another connectivity gap

UK regional carrier Eastern Airways has cancelled all flights and filed a notice of intention to appoint administrators, effectively ceasing operations after 27 years. The airline’s collapse leaves parts of the UK facing another regional connectivity gap.

Embraer ERJ-190 from Eastern Airways operated by KLM Cityhopper regional airliner

UK regional airline Eastern Airways has cancelled all its flights and suspended bookings with immediate effect. It has filed a notice of intention to appoint an administrator – a legal move to give it creditor protection for 10 days – but is unlikely to resume operations.

According to UK publication The Independent, the airline has returned all its aircraft to lessors. The carrier used a fleet of six Embraer E-Jets, five BAe Jetstream 41s and three ATR-72 turboprops. The aircraft are currently recorded as being parked at various UK airports, including Norwich, Humberside, Aberdeen and Exeter, as well as at Saarbrueken in Germany and Dinard in France.

“All Eastern Airways-operated flights are now cancelled. Therefore, please do not go to the airport as flights will not be operating,” the UK CAA advised passengers. “Eastern Airways customers are therefore urged to make their own alternative travel arrangements via other airlines, rail or coach operators.”

Eastern Airways ATR-72
Photo: Pictureguy20 / Wikimedia

The airline operated flights from six UK airports: London Gatwick, Humberside, Teesside International, Aberdeen, Wick and Newquay. Two of these routes – Aberdeen to Wick and Newquay to London – were Public Service Obligation (PSO) routes, meaning they received government support for essential connectivity.

Rail companies and Loganair to pick up the slack of Eastern Airways’ collapse

 Passengers with forward bookings are advised to find alternative transportation and seek refunds for their tickets. However, those with close-in bookings, on 28-29 October, will be accommodated by rail companies to get to their destination.

The CAA confirmed that LNER, ScotRail, TransPennine Express and Northern Railway will offer free standard class travel to any passengers with a valid boarding pass or flight confirmation, as well as to Eastern Airways staff with an employee ID card.

Eastern Airways British Aerospace Jetstream 41
Photo: Alan Wilson / Wikimedia

Loganair is also offering rescue fares on Aberdeen to Kirkwall and Aberdeen to Sumburgh. The rescue fare is £80 one way when departing from Kirkwall or Sumburgh, and is £87 one way when departing from Aberdeen (as this includes the additional £7 APD charge), and will be available on the 28, 29 and 30 October.

For the year ending March 2024, Eastern Airways reported a net loss of £19.7 million and total debt of approximately £26 million. The airline carried around 1.3 million passengers annually and was only re-awarded its PSO route contracts in March of this year.

UK regional aviation will lose another stalwart

The Humberside-based airline seems destined to become another corpse on the wayside of UK regional aviation. The collapse of BMI Regional and Flybe (twice) left the dispersed regions struggling for connectivity, and with another carrier failing, options are limited.

Scottish airline Loganair could be well placed to pick up some of the northern routes at least. However, apart from its Britten Norman Islanders and DHC-6 Twin Otters, reserved for specific routes, all its aircraft are significantly larger than Eastern’s fleet, which could make the routes unviable.

Southern airports, including Newquay in Cornwall, will find it less straightforward to secure an alternative provider. Speaking to the BBC last month, Amy Smith, managing director of Cornwall Airport Newquay, told BBC Radio Cornwall they were working hard to expand the number of flights, but that it can be an uphill struggle to attract new airlines.

“They are only going to come in and put a new route in if they think it is going to work for them as a business,” she said.

Eastern Airways Embraer ERJ 170 Aircraft
photogoodwin / stock.adobe.com

Eastern Airways has been flying since 1997, having launched with a single route between Humberside and Aberdeen, serving the oil industry. It expanded in the early 2000s to add routes to London City, the Isle of Man and Newcastle, and operated a short-lived connection between Cardiff and Anglesey in North Wales.

More recently, Eastern collaborated with KLM to operate links from British cities to Amsterdam, but that agreement ended on 5 October. To support the partnership, Eastern Airways had added three new ERJ-190s and one ERJ-170 this summer.

The airline now has 10 days to explore rescue options, restructuring, or to prepare for insolvency proceedings.

Eastern Airways flight cancellations: Your rights as a passenger

If you’ve booked a flight with Eastern Airways, your rights depend on how the booking was made and whether your travel was part of a package or a stand-alone flight.

If you booked directly with the airline, Eastern’s flights are currently cancelled following its filing of a notice to appoint administrators. Unfortunately, this means the Civil Aviation Authority (CAA) is not required to repatriate or refund passengers, since Eastern Airways was not covered by ATOL protection.

You should not travel to the airport, as no flights are operating. Customers who paid by credit card (for bookings over £100) can claim a refund under Section 75 of the Consumer Credit Act, while those who paid by debit card may be able to seek a chargeback through their bank.

If your Eastern Airways flight formed part of a package holiday, you should contact your tour operator or travel agent immediately. ATOL protection may apply in that case, meaning your provider must arrange an alternative flight or refund. Passengers who booked via a third-party travel site or agency should check their terms and conditions, as some may provide additional refund support or travel insurance coverage.

In all cases, keep your booking confirmations, receipts and any communications from the airline or agent, as these will support any refund or insurance claim.

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