Major Airline Enters Liquidation with All Flights Cancelled
A significant aviation operator has ceased operations, entering liquidation and grounding its entire commercial fleet. Royal Air Philippines has officially collapsed into administration, resulting in the immediate cancellation of all scheduled flights and leaving thousands of travellers scrambling to rearrange their journeys.
Passengers Left Stranded as Operations Halt
The Manila-based carrier has confirmed the cancellation of all commercial services, directly impacting between 3,000 and 4,000 passengers who held bookings for travel between January and March. These affected individuals are now seeking refunds and alternative travel arrangements following the sudden operational shutdown.
The airline's website currently displays a message stating: "We are working on providing refunds and hope to resume flights at an unspecified date in the future. Thank you for your patience and understanding. We eagerly anticipate welcoming you aboard soon."
Warning Signs and Market Challenges
Royal Air Philippines' Chief Executive Officer, Eduardo Novillas, had previously indicated concerns about weakening demand several weeks before the collapse. According to reports from Philstar, Novillas sent correspondence to a travel agency ahead of the Christmas period, warning that the carrier would suspend commercial flights by January 4th.
Novillas specifically highlighted "significantly low" interest from crucial markets as a primary factor in the decision. This assessment aligns with observations from Asian Development Bank economist Jules Hugot, who noted that tourist arrivals from China to the Philippines remained substantially below pre-pandemic levels entering early 2025.
Corporate Background and Ownership Structure
Royal Air Philippines, commonly referred to simply as Royal Air, operates under the ownership of the Cambodia-registered Lanmei Group, also known as the Lancang-Mekong Group. The company represents a Chinese-backed private enterprise established and chaired by Li Kun, who previously served as president of Shenzhen Airlines.
The airline began operations in 2002 as a charter service before transitioning to a low-cost carrier model in 2018. Royal Air Philippines received its official licence to operate commercial flights in 2017 and conducted its inaugural passenger service eight years ago.
During its peak operational period, the carrier served multiple international destinations across Asia, including:
- Cambodia
- China
- South Korea
- Hong Kong
- Taiwan
Broader Aviation Industry Context
This development follows recent news regarding British green investor Dale Vince abandoning his earlier plans to establish the country's first zero-emission airline. Vince's proposal involved purchasing older Twin Otter and ATR 72 aircraft and converting their kerosene engines to hydroelectric power systems.
The collapse of Royal Air Philippines represents another significant challenge within the aviation sector, highlighting the ongoing difficulties faced by carriers in certain markets as they navigate post-pandemic recovery and shifting travel patterns.
