Major UK airline plunges into administration - in business since 1997

A rescue deal to save a UK airline that has been in business for over 25 years has collapsed after it was plunged into administration. Eastern Airlines lost its contract with KLM, leaving it struggling financially and in dire need of a cash injection.

However, a potential rescue deal of regional airlines and its affiliated company Air Kilroe has fallen through, and administrators are no longer able to save them. RSM UK will now break up and sell the businesses' assets separately, according to new documents.

A joint sale of the airlines was initially billed as an option as the companies operated under a single business before entering into administration in November 2025.

Based in North Lincolnshire, Eastern Airlines previously flew routes across the UK, Ireland, and Europe.

At its peak, it provided 200 flights a day and employed around 330 staff members, the majority of whom have now been made redundant.

Only 16 employees remain and are expected to stay on until the administration process is finished.

It operated four aircraft for KLM Cityhopper in Europe. However, this contract was lost in October 2025 due to "high fixed overheads", and its staff base had "ultimately proved too high to be sustainable", RSM UK said.

Jamie Miller, partner at RSM UK and joint administrator, explained: "The unexpected and sudden termination of Eastern's KLM contract, along with other economic factors, unfortunately left the directors with no choice but to appoint administrators."

All nine of the company's fleet have subsequently been sold to private buyers, including associated parts and components.