UK airline plunges into administration and cancels all flights - in business since 2020
More than 200 jobs are potentially affected.
A UK airline has collapsed into administration after facing mounting financial pressures, with more than 200 jobs potentially affected. European Cargo, based at Bournemouth International Airport, appointed joint administrators on Wednesday after what it described as a period of "significant financial pressure".
The freight airline said reduced flying activity, working capital challenges and rising fuel costs had all contributed to the business's collapse. In a statement published on its website, the company said: "The company has ceased trading and, regrettably, redundancies are being made. Affected employees are being contacted as a priority – while also engaging with customers, suppliers, creditors and other key stakeholders." European Cargo specialised in transporting freight using Airbus A340-600 aircraft and became known during the Covid-19 pandemic for flying personal protective equipment (PPE) into Bournemouth Airport. It began operations in April 2020 when its parent company, European Aviation, responded to an urgent charter request by the UK government for PPE transport from Malaysia.
The collapse comes despite the airline having recently expanded its fleet to 15 aircraft and launched new operations from bases in Teesside and Cardiff.
The company employed more than 200 staff, although the total number of job losses has not yet been confirmed.
Aviation analyst Tomos Shah-Howells described the collapse as "like a real sucker punch" for Bournemouth Airport.
Mr Shah-Howells said: "You look at where this airline was heading and the ambitions they had and the growth they had.
"And I know that Bournemouth did absolutely fantastic work helping them expand their operations...
"My heart really goes out to the people at Bournemouth airport and all of the staff that work there as well."
He said the airline's business model was unusual but heavily reliant on older aircraft that are more costly to operate.
Mr Shah-Howells said: "They use the Airbus A340-600 aircraft, it's a very old aircraft, a four-engine, large, wide-body plane.
"It's not traditionally used by many airlines around the world anymore, just because of the rising costs of operating these aircraft."
European Cargo had previously described Bournemouth as a cost-effective alternative to other UK airports.
