Cargo airline enters administration

A Dorset-based cargo airline has gone into administration with the loss of 178 jobs.

Commercial aviation publication Airways reported European Cargo, based at Bournemouth International Airport, has filed for administration only months after it had been expanding its UK footprint.

The company posted on its website on Wednesday that joint administrators had been appointed who would manage the affairs, business and property of the company.

It has not yet been confirmed how many jobs may be affected in total. The BBC has contacted Bournemouth Airport and European Cargo for comment.

Aviation analyst Tomos Shah-Howells, from Aviation Source, said the move would feel "like a real sucker punch" for Bournemouth airport as it has been a "huge investment".

"You look at where this airline was heading and the ambitions they had and the growth they had," he said, adding its business model was "very unique".

"They use the Airbus A340-600 aircraft, it's a very old aircraft, a four-engine, large, wide-body plane.

"It's not traditionally used by many airlines around the world anymore, just because of the rising costs of operating these aircraft."

He added the rising cost of aviation fuel had come at the wrong time for the carrier.

"They were on the up, they had great expansion plans, they've just expanded their fleet to 15 aircraft, over 200 members of staff, a brand new base at Teesside, operations launched at Cardiff.

"And I know that Bournemouth did absolutely fantastic work helping them expand their operations... my heart really goes out to the people at Bournemouth airport and all of the staff that work there as well," he added.

European Cargo flew personal protective equipment (PPE) into the airport at Hurn during the Covid pandemic and had previously said airports like Bournemouth were a more cost effective alternative.

In a statement joint administrators, Teneo, said it followed "a period of significant financial pressure on the business, driven by reduced flying activity and working capital and fuel cost pressures.

"The company has ceased trading and, regrettably, redundancies are being made. Affected employees are being contacted as a priority - while also engaging with customers, suppliers, creditors and other key stakeholders."