Major airline plunges into administration with flights cancelled – in business since 2002

A major airline has collapsed into administration, with all of its flights brought to a standstill.

More than 3,000 passengers have been left in limbo after Royal Air Philippines was compelled to cancel all of its commercial flights. Between 3,000 and 4,000 passengers holding bookings from January through March were reportedly stranded, and are now pursuing refunds and alternative travel arrangements.

Royal Air Philippines CEO Eduardo Novillas had already flagged sluggish demand weeks earlier, cautioning that the carrier would suspend commercial flights by January 4 in a letter to a travel agency ahead of Christmas, Philstar reported.

He pointed to “significantly low” interest from key markets. Asian Development Bank economist Jules Hugot noted arrivals from China to the Philippines remained well below pre Covid pandemic figures entering early 2025.

The airline’s website says: “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.”

Royal Air Philippines, commonly known simply as Royal Air, is owned by the Cambodia-registered Lanmei Group, also referred to as the Lancang-Mekong Group. The airline is underpinned by Chinese investment and was established by Li Kun, the former president of Shenzhen Airlines, who now serves as its chairman, Express reports. Founded in 2002 as a charter operator, Royal Air pivoted towards a low-cost carrier model in 2018 following the receipt of its commercial flight licence the previous year.

Its inaugural passenger service took to the skies eight years ago, and at its height the airline served numerous international destinations, amongst them Cambodia, China, South Korea, Hong Kong, and Taiwan.

The news emerges just weeks after a British airline collapsed into liquidation following a reported attempt to raise £20 million.

Scottish company Ecojet Airlines had been heralded as the world’s first all-electric airline, established in 2023 by entrepreneur Dale Vince, a well-known Labour donor and owner of Forest Green Rovers football club.

The airline harboured ambitious plans for long-haul flights and European routes, with an initial service between Edinburgh and Southampton mapped out. However, a petition was submitted to Edinburgh Sheriff Court to wind up the business and appoint joint interim liquidators, as documents from late January reveal.

At the time of its launch, Mr Vince declared: “This is a vital frontier in the move to net zero, green living, whatever you choose to call it – and it’s absolutely doable. It’s a matter of when, not if.”

The Herald reports that Paul Dounis and Mark Harper, of Opus Restructuring, were named as provisional liquidators. Opus confirmed the action followed a “voluntary liquidation initiated by the company’s board”.