Eastern Airways, which operated regional services from airports across the UK, entered administration at the end of last year.

The firm suffered financial difficulties after the loss of a contract with airline KLM.

Now, a potential rescue deal for the company and its affiliated company, Air Kilroe, has fallen through.

When did Eastern Airways enter administration?

Eastern Airways suspended operations at the beginning of November, with all operated flights cancelled.

Selina Chadha, Consumer & Markets Director at the UK Civil Aviation Authority, said at the time: “We urge passengers planning to fly with this airline not to go to the airport as all Eastern Airways flights are cancelled.

“Eastern Airways customers should visit the Civil Aviation Authority’s website for the latest information.”

Eastern Airways was founded in 1997 and was headquartered at Humberside Airport near the village of Kirmington in North Lincolnshire.

The airline operated domestic, international and private charter flights, with more than a million passengers flying with the airline per rolling year.

It provided 200 flights per day and employed around 330 staff members at its peak, and as well as routes across the UK, it also had some routes to Ireland and Europe.

The airline also had its own hubs in Aberdeen and Humberside.

Eastern Airways to disappear after 29 years as rescue deal fails

A potential rescue deal for Eastern Airlines, and its affiliated company Air Kilroe, has now fallen through, meaning administrators are unable to save the airline.

Administrators RSM UK are now set to break up and sell the businesses’ assets separately, according to a report from The Sun.

A joint sale of Eastern and Air Kilroe had been looked at, as the companies had operated under a single business.

At the time the business collapsed, RSM said “high fixed overheads” and its staff base had “ultimately proved too high to be sustainable”.

Jamie Miller, partner at RSM UK and joint administrator, said at the time: “The unexpected and sudden termination of Eastern’s KLM contract, along with other economic factors, unfortunately left the directors with no choice but to appoint administrators.”

Now, all nine of Eastern Airways’ aircraft fleet have been sold, along with plane parts and components.

Airlines and travel companies that have gone into liquidation or administration in 2026

Four UK airlines have fallen into administration or liquidation this year:

Several airlines also entered liquidation in 2025, according to the UK Civil Aviation Authority, including:

• Blue Islands Limited (UK)
• Air Kilroe Limited t/a Eastern Airways (UK)
• Play Airlines (Iceland)

Several travel companies have also entered administration this year, including:

Luxury UK holiday company Salamander Voyages shut down back in April after entering administration.

Just last month, Groupia Ltd, which also trades as Groupia Golf, GoHen, StagWeb, Groupia School Trips, and Company Away Days, also fell into administration.

It offered customers “the best” group travel holidays to destinations in the UK and abroad, including Prague, Split, and Barcelona.

More than 750,000 travellers have used the company since it began back in 2002, booking everything from stag and hen weekends to golf trips, team tours, and spa breaks.

After 24 years in business, Groupia, which is based in Bath, has now fallen into administration.

Nigel Fox and Christopher Marsden of S&W Partners LLP were appointed joint administrators on June 16, according to the Groupia website.

It continues: “The Company has now ceased taking new bookings, and arrangements are in place with ABTOT to support customers with existing bookings.”

Bookings on or before August 31, 2026, are expected to go ahead as planned, the Groupia website says, thanks to an arrangement with ABTOT (financial protection company).

Any holidays booked with Groupia for after September 1, 2026, have been cancelled.

Have you been affected by any airline or travel company closures so far this year? Let us know in the comments.

The Financial Conduct Authority (FCA) said some people trapped in older, or “legacy”, pension products are being left worse off because of outdated charging structures and ageing systems.

The warning affects unit-linked non-workplace pensions and savings products, which hold more than £1 trillion of customers’ money.

Why are older pensions under scrutiny?

The regulator reviewed how pension firms are treating customers under its Consumer Duty rules, which require financial companies to deliver fair value.

While the FCA found many pension products offer good value, it said some customers with older pensions are still paying more than people who have newer versions of similar products.

The watchdog said this can happen because of:

• Older charging structures with multiple fees
• Legacy pension products that have never been updated
• Outdated IT systems that make it harder for firms to monitor whether customers are receiving fair value

What the FCA wants pension firms to do

The regulator says pension providers should actively identify customers receiving poor value and take action to improve their deals.

Some firms are already:

• Reducing or capping charges on older pension plans
• Moving customers into better-value products
• Comparing outcomes between older and newer customers to ensure they are being treated fairly

The FCA wants these approaches to become standard across the industry.

‘Consumers should not be left behind’

Charlotte Clark, the FCA’s director of cross-cutting policy and strategy, said:

“Consumers in older products should not be left behind, and the good news is that some firms are already showing it doesn’t have to be this way.

“We want to see that progress reflected right across the market.”

Recommended reading:

What should pension savers do?

If you have a pension that was opened many years ago and have never reviewed it, experts generally recommend checking:

• How much you’re paying in annual charges
• Whether your pension is still suitable for your needs
• Whether a newer version of the same product offers lower fees or better investment options
• If your provider can explain the value you’re receiving

The FCA says firms should be able to demonstrate that customers in older pension products receive fair value, rather than leaving long-standing savers paying more simply because they have remained loyal.

Phoenix Software has completed its transition to working exclusively with the UK public sector, following a strategic division of focus within Bytes Technology Group.

It now serves 11 public sector verticals: Central Government, Local Government, Policing, Fire and Rescue, Defence, Healthcare, Higher Education, Further Education, Schools and Trusts, Housing, and Charity and Social Impact.

The shift formalises a customer focus that has shaped most of Phoenix’s business for more than 35 years. Under the new structure, every account team, consultant, solution architect and customer success manager will work only with public sector organisations.

Bytes Technology Group had previously announced that Bytes Software Services would focus solely on the private sector, while Phoenix would take sole responsibility for the public sector market. With that change now complete, Phoenix is positioning itself as a specialist supplier to government and other publicly funded bodies.

Management argues that public sector buyers are often served by suppliers whose commercial and government businesses sit side by side. In Phoenix’s view, that model can blur the differences in procurement processes, funding structures and operating pressures across public services.

Its sector model is intended to reflect the range of institutions within the public sector rather than treating them as a single market. Different organisations, from local authorities to universities and emergency services, face distinct regulatory, operational and procurement demands.

Clare Metcalfe, managing director of Phoenix Software, described the decision as a defining change for the business.

“We are the UK’s public sector specialist. Not partly. Not alongside other things. Entirely. That is who we are now,” Metcalfe said.

She said that commitment applies across the company’s client base in public services.

“Every customer we serve in Central Government, Local Government, Policing, Fire and Rescue, Defence, Healthcare, Higher Education, Further Education, Schools and Trusts, Housing, and Charity and Social Impact will now be working with an organisation built entirely around their world,” she said.

Sector focus

Phoenix has aligned the business around each of the 11 sectors, with dedicated contacts and specialist knowledge for each area. Each segment has its own procurement frameworks, policy environment and buyer expectations.

That reflects the company’s view that even closely related parts of the public sector do not buy or use technology in the same way. Senior leaders in local government, for example, may work within the same institution while facing very different financial, legal and service pressures.

The same pattern applies across education and healthcare, where procurement rules, risk profiles and operational requirements can diverge sharply. Phoenix says those differences have shaped how it now organises teams and customer engagement.

Metcalfe said the company sees the public sector as a group of distinct operating environments rather than a single audience.

“Phoenix is a partner that has sector specialists built into it, rather than a partner with a public sector team bolted on,” she said.

She added: “The eleven sectors we work across each carry their own pressure: tight budgets, rising demand, regulatory scrutiny, sensitive data, and a workforce stretched thin. What they share is the expectation that technology delivers more without costing more. What they do not share is a framework set, a buyer language, a threat surface, or an operating rhythm. A partner built for the public sector has to hold both of those truths at once – the common ground and the eleven different worlds – and treat neither as an afterthought.”

Long history

Phoenix said the move builds on relationships and public sector work developed over more than three decades. The transition changes the organisation’s focus rather than its underlying market presence.

The business has historically worked in software licensing, infrastructure and related IT advisory services. Its customer base has included councils, NHS bodies, schools, universities, housing providers and charities.

Metcalfe said the shift is intended to sharpen that identity rather than create a new line of business.

“Phoenix has worked alongside councils, the NHS, schools, universities, housing providers, and charities for more than three decades. The frameworks, the credentials, and the customer relationships are already in place. What changes is not the foundation. It is the focus. The UK public sector needs a technology partner that is built for it, not adapted to it. This is us committing fully to where we have always been and where our future sits. Public sector is not a practice for us. It is the whole company,” she said.