European Aviation Group has acquired the assets of European Cargo Limited (ECL), a freight airline based at Bournemouth International Airport that entered administration on June 3. The acquisition includes a fleet of 16 Airbus A340-600 aircraft, seven of which are flight-ready, as well as a stock of Rolls-Royce Trent 553 and 556 spare engines.
Administration and Job Losses
ECL entered administration on June 3, with Stuart Morris, Robert Fishman and David Soden of Teneo Financial Advisory Limited appointed as joint administrators. Teneo said the appointment followed a "period of significant financial pressure on the business, driven by reduced flying activity and working capital and fuel cost pressures."
The administrators confirmed that ECL had ceased trading and that redundancies were being made, with 178 employees reportedly losing their jobs. ECL itself remains in administration, according to Companies House.
Acquisition Details
European Aviation Group, based in Ledbury, is headed by Paul Stoddart, the former Minardi Formula 1 team boss. Stoddart, chair and chief executive of European Aviation Group, said: "We are delighted to have concluded our acquisition of all of the assets of ECL with the joint administrators."
He added: "Whilst this is a massive investment from EAL, I feel totally confident that we can keep this excellent fleet of cargo aircraft flying for the foreseeable future." European Aviation Group has not confirmed whether the acquisition will result in any of the 178 former European Cargo employees being offered jobs.
Background and Operations
European Cargo began operations in April 2020 after its parent company, European Aviation, responded to an urgent request by the UK Government to transport personal protective equipment (PPE) from Malaysia. The carrier subsequently operated more than 400 charter flights carrying PPE and Covid-19 testing kits. Its aircraft were also painted in commemorative liveries paying tribute to the NHS.
ECL's collapse came just months after the airline announced plans to establish a new base at Teesside Airport Business Park. Five flights a week were due to operate from the airport, carrying up to 375 tonnes of freight.
