A British airline has entered administration, grounding flights and reportedly leaving some staff redundant. European Cargo Limited, which operates long-haul freighter services from Bournemouth Airport, confirmed the appointment of administrators on June 3.
Administration Details
The company announced that Stuart Morris, Robert Fishman, and David Soden of Teneo Financial Advisory Limited were appointed joint administrators. The cargo firm, launched during the Covid pandemic, converted former passenger planes into freight aircraft and supported NHS PPE deliveries.
Staff Redundancies
Two anonymous staff members claimed they were made redundant via a Microsoft Teams call on Wednesday, as reported by the Bournemouth Echo. Flight tracking data from FlightAware shows no departures after May 19, indicating operations ceased before the formal filing.
Company Background
European Cargo described itself as a "one of a kind cargo operation," offering agile, efficient, and long-range air freight services with a fleet of unique A340s. It operated flights worldwide from Bournemouth Airport, which the company praised as a cost-effective alternative with uncrowded airspace and transport links to London.
Industry Challenges
The airline did not specify reasons for administration, but it joins a trend of carriers facing difficulties due to skyrocketing jet fuel prices and the Middle East conflict. Hundreds of jobs have been lost, and other airlines have slashed services or raised ticket costs.
The UK Government has relaxed sanctions on Russian crude oil, allowing imports of jet fuel and diesel refined in third countries amid surging costs. A trade licence, effective last month, permits these imports indefinitely, with periodic reviews as fuel prices rise due to the closure of the Strait of Hormuz and the ongoing Middle East crisis.
Recent Similar Cases
UK charter carrier Zenith Aviation Limited entered administration in late May. Paul Hargraves of Nexus Corporate Solutions Limited, appointed as administrator, cited "cashflow issues" among other challenges. The Mirror has contacted European Cargo for comment.
