Business / Nine jobs lost locally after Eastern Airways stops flying
A TOTAL of nine people in Shetland have lost their jobs following the collapse of Eastern Airways, it is understood.
A source close to the situation told Shetland News that the company suspending operations last week came as a “total shock” to local staff working from Sumburgh Airport, who are still waiting on some wages being paid.
The union Unite is supporting employees affected by the situation, which emerged last week when Eastern signalled its intent to appoint an administrator and then stopped all operations.
The UK regional airline operated oil and gas charter flights via Sumburgh Airport for one client, understood to be BP, taking workers to Shetland before onward helicopter travel to offshore rigs.
Eastern Airways was subcontracted by helicopter firm Bristow to operate fixed wing services between Sumburgh and Aberdeen.
Bristow said last week that it has arrangements in hand clients to minimise any impact.
Unite industrial officer Paula Buchan said the union is “deeply concerned” for those who worked for Eastern Airways.
“We are representing our members in this extremely difficult situation and Unite will provide them with every support possible including legal advice,” she said.
It is anticipated that Jamie Miller and Gareth Harris of RSM UK Restructuring Advisory LLP will shortly be appointed joint administrators of Eastern.
They said the majority of Eastern’s 330 employees have been made redundant.
RSM said Eastern was founded in 1997 and most recently has been flying four aircraft for KLM Cityhopper, in Europe, and other UK based routes under its own name, as well as running a successful charter business.
However, very recently the KLM contract was terminated leaving Eastern with “high fixed overheads and a staff base that has ultimately proved too high to be sustainable”, RSM said in a press release.
“The directors had been actively seeking alternatives to rescue the companies however, with a significant immediate funding requirement, administration and cessation of day to day operations was unfortunately the only viable option,” it added.
Miller said: “For those staff not retained, we will provide every assistance to them to ensure they successfully claim their entitlements from the redundancy payments service.
“We would welcome any interest from potential alternative operators, or those who may have an interest in the underlying assets.”
The news last week prompted Loganair to invite affected employees to get in touch with its recruitment department.
Local MSP Beatrice Wishart meanwhile has called for the Scottish transport secretary to deliver an immediate statement to parliament setting out what actions the government is taking to respond to the collapse of Eastern Airways.
It runs a number of flights within the UK, including a Wick to Aberdeen service, which is a public service obligation (PSO) route funded by the Scottish Government and Highland Council since April 2022.
“The Scottish Transport secretary needs to deliver an immediate statement to parliament setting out what actions the government is taking to respond to this upheaval,” she said.
“I was pleased to see Loganair step in last week with rescue fares to support flights to Aberdeen but ministers will need to set out what role they expect them to play going forward.
“In Shetland, Caithness and Aberdeen, this collapse will mean longer journey times and bad news for businesses. Scottish Liberal Democrats will fight to restore access to these key routes.”
Meanwhile the Lib Dem candidate for Shetland in next year’s Scottish parliament election, Emma Macdonald, said the North Sea industries are “vital” in Shetland.
“The last thing we need is for them to face additional challenges getting workers to where they need to be. We need an early answer from ministers on how they are going to stabilise this situation.”
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