Overview
- Joint administrators RSM have confirmed the proposed going‑concern sale of Air Kilroe Ltd, which trades as Eastern Airways, has collapsed and they have moved to break up the business to sell assets.
- A preferred purchaser paid an initial sum on 22 December 2025 but issued formal notice in January 2026 that it was withdrawing from the exclusivity agreement and made no further payments.
- Administrators have instructed agents to sell aircraft, parts and other assets; nine unencumbered Jetstream 41 aircraft and associated parts have been sold with initial tranche payments received, and other components and three vehicles have also been sold.
- The collapse followed the abrupt loss of a KLM Cityhopper contract in late October 2025 that provided roughly 55% of Eastern’s revenue and triggered the suspension of flights and more than 290 redundancies.
- RSM says wider sector pressures — higher jet fuel prices, regional geopolitical turmoil and a reduced pool of buyers after other airline failures — limited rescue options, and remaining staff are being kept only to assist with administration and disposals.