Airline crashes into administration - owes UK airport £1.5m

A British regional airline that went crashing into administration last year owes Newquay Airport more than £1.5 million, but the hub is unlikely to see any of the money. Eastern Airways, which operated air links between Cornwall and London, went into administration last November, forcing all flights to cease until a replacement carrier could be found.

In late 2021, an agreement was reached between the Government and Cornwall Council for Eastern Airways to operate daily services between Cornwall Airport Newquay and Gatwick Airport. This service was part of a four-year Public Service Obligation (PSO) that ensured year-round connectivity between Cornwall and the London hub, deemed crucial for the local economy. However, Companies House has recently published a notice of administrator's proposals, revealing that the airline owes a staggering £28.7 million to 416 creditors, including several businesses in the South West.

Cornwall Airport Newquay is among those owed the largest sums, at almost £1.56 million. Exeter Aerospace Limited is due just over £204,200 and Exeter and Devon Airport Ltd nearly £9,900. Plymouth-based Courierforce is also noted as owing over £51,200.

However, it is understood that the likelihood of receiving any of this money is extremely low. A report by administrators RSM UK Restructuring Advisory indicated that there is "nil" chance of unsecured creditors - who account for over £20 million of the debt - recovering their funds.

The Express contacted Cornwall Airport Newquay for comment and a spokesperson said: "We are unable to comment on the ongoing administration process and matters relating to individual creditors, but our thoughts remain with everyone affected by recent airline insolvencies and the impact this has had on colleagues and partners.

"Looking forward, we are proud of the positive progress that has been made to restore and strengthen Cornwall's vital air link to London.

"Skybus launched operations in November and is stepping up to twice-daily weekday flights from February 2026."

Co-founded by Bryan Huxford and Richard Lake, Eastern Airways started operations in December 1997. Its first service was a scheduled flight between Humberside and Aberdeen, launched specifically to fill a gap left by KLM UK. In 2002, Eastern significantly expanded by acquiring Air Kilroe, which gave it a foothold at Manchester Airport.

In 2003, it acquired several regional routes and 12 Jetstream 41 aircraft from British Airways, as the national carrier exited non-trunk regional markets. Then, in 2014, Bristow Helicopters acquired a 60% stake in the airline - a strategic move to integrate fixed-wing and rotary-wing services, primarily serving the oil and gas industry in the North Sea.

Following financial struggles at Bristow, Eastern Airways was sold in 2019 to Orient Industrial Holdings Limited, returning it to independent status. During this era, Eastern operated as a franchise partner for the original Flybe. When Flybe collapsed in 2020, Eastern quickly pivoted to operate many of those routes under its own brand. Eastern Airways officially entered administration in late 2025, marking the end of its 28-year history as a key regional carrier. Its registered office then moved to a restructuring firm in Leeds.