Cornwall Airport Newquay is facing a significant financial blow, with administrators confirming it is owed over £1.5 million by the collapsed airline Eastern Airways, money it is now unlikely to ever see.
The Route Collapse and PSO Agreement
Eastern Airways entered administration in November 2025, abruptly halting its daily flights between Newquay and London Gatwick. This service was a vital lifeline, established under a four-year Public Service Obligation (PSO) agreed in late 2021 between the government and Cornwall Council.
The PSO, financially supported by Cornwall Council and the Department for Transport, was designed to guarantee year-round connectivity to a major hub for Cornwall's economy. The route has since been taken over by Skybus, part of the Isles of Scilly Steamship Group.
Administrator's Report Reveals Grim Outlook
Recently published documents from Companies House show the full scale of the disaster. Administrators RSM UK Restructuring Advisory state that Eastern Airlines owes a total of £28,710,452.33 to 416 creditors.
Cornwall Airport Newquay is listed as one of the largest single creditors, owed £1,566,910.62. However, the administrators' report is brutally clear: there is a 'nil' chance of unsecured creditors recovering their money. Unsecured claims account for over £20 million of the total debt.
Local South West Businesses Also Hit
The fallout extends across the regional business community. Other local firms listed among the creditors include:
- MRMU (HIE) Ltd T/A Holiday Inn Express, St Austell: £18,176.44
- A2B Taxis (Truro) Ltd: £9,646.23
- Exeter Aerospace Limited: £204,253.26
- Courierforce (Plymouth): £51,231.60
- Helios Maritime Aviation, Truro: £4,165.88
Further afield, Exeter and Devon Airport Ltd is owed £9,863.27.
Lasting Impact and Future Questions
The collapse leaves a substantial hole in the airport's finances and serves as a stark reminder of the risks involved in supporting regional air links. While the PSO route itself has been preserved with a new operator, the financial legacy of the Eastern Airways failure will be felt by numerous local businesses for some time.
Cornwall Council and Cornwall Airport Newquay have been approached for comment on how they will manage this loss.
