EASTERN Airways has axed hundreds of jobs after grounding all flights, as the carrier teeters on the brink of collapse.
The regional carrier let go off around 250 staff, including all cabin crew this week.
Staff were informed they were being let go at 5pm on Monday, October 27, according to an insider, who also claimed employees are not being paid.
The news comes after the airline axed all flights as it prepared to enter administration.
Eastern Airways
Eastern has around four planes – three of which have a cabin crew of four and one that is staffed by three crew.
The firm filed a notice of intention to appoint an administrator on Monday, giving the airline 10 days to secure a rescue or face insolvency.
The company operated crucial, government-subsidised Public Service Obligation routes, linking smaller cities that wouldn’t otherwise have viable air connections.
Founded in 1997, Eastern carried around 1.3 million passengers a year and served destinations including Wick, Aberdeen, Humberside, Teesside, London Gatwick, and Newquay.
It also ran charter flights for top sports teams across Europe.
As of this week, all routes have now been suspended.
Financial struggle
The airline’s financial position has worsened in recent years.
For the 12 months to March 2024, Eastern Airways reported a net loss of £19.7 million – £4.8 million higher than the previous year.
The company’s total debt rose by £4.8 million to £25.97 million, while profit fell sharply to £454,000 from £1.55 million the year before.
The company now has days to find a lifeline.
Selina Chadha, consumer and markets director at the UK Civil Aviation Authority issued a statement on the cancellations.
“We urge passengers planning to fly with this airline not to go to the airport as all Eastern Airways flights are cancelled,” she said.
“Eastern Airways customers should visit the Civil Aviation Authority’s website for the latest information.”
What to do if you have an upcoming flight with Eastern Airways
LISA Minot, Head of Travel at The Sun, shares her advice…
Passengers stranded by the collapse of Eastern Airways have several options depending on their circumstances.
If you need to still fly, you’ll need to find – and pay – for an alternative flight with another airline.
Many airlines offer rescue fares when competitors go bust, offering lower prices for those who can prove they were due to fly with the airline that has failed.
Or if you can get the train, London and North Eastern Railway (LNER), ScotRail, TransPennine Express (TPE), and Northern Railway are offering free Standard Class travel to Eastern Airways staff and customers on Tuesday 28 and Wednesday 29 October, on suitable routes operated by each train company.
For those without scheduled airline failure insurance, you will sadly be left out of pocket.
If you are due to fly with Eastern Airways in the coming days, weeks or months, you should put a claim in straight away with your debit or credit card provider.
They should refund you without fuss.
For those who are due to fly with Eastern Airways as part of a package holiday they have bought from a travel agent or tour operator, your package holiday provider is obliged to find an alternative way for you to reach your destination or offer you a full refund.
The UK’s Civil Aviation Authority has the latest information on its website, caa.co.uk
Eastern Airways has been contacted for comment.
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