Eastern Airways assets to be sold after rescue bid fails

A potential rescue deal for regional carrier Eastern Airways, and its affiliated company Air Kilroe, fell through earlier this year, it has emerged.

The Humberside airport-based carrier entered administration in November after flights had been suspended. Most of its 330 staff were made redundant.

A new progress report from Leeds-based joint administrators RSM UK detailed how the company was “effectively mothballed”, with key employees retained and ongoing routine maintenance carried out, “in order to enable the business to be marketed for sale, with the option of a rescue as a going concern”.

Seven offers were received and a preferred bidder identified.

But on January 8, administrators were notified by the proposed purchaser that “they were withdrawing from the exclusivity agreement and would no longer be providing any further funding”.

“Despite best efforts of the joint administrators, including numerous meetings, calls and significant correspondence, a going concern sale of Air Kilroe could not be completed with any interested party,” said the report.

It means the assets are now in the process of being sold, after which the remaining 12 members of staff will be made redundant.

Founded in 1997, Eastern Airways had been flying four aircraft for KLM Cityhopper in Europe and other UK-based routes under its own name, as well as running a charter business.

Joint administrator Jamie Miller, of RSM UK, said when the airline entered administration: “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.”

More: Analysis: Eastern Airways struggled to take off for a while

Eastern Airways enters administration [November 2025]