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Airline goes into administration | Airline goes into administration |
(20 minutes later) | |
A Scottish airline has been placed in administration, it has been announced. | |
Highland Airways called in PricewaterhouseCoopers on Wednesday night to take over the running of the business, which also operates in Wales. | |
All of its Thursday flights have been cancelled and no further bookings are being taken. | |
The Inverness-based airline's problems came to light at the start of the year after severe weather led to cancelled flights and worsening debts. | |
The Civil Aviation Authority said operations had been suspended "with immediate effect." | |
'Reviewing position' | |
The airline held a CAA operating licence and air operating certificate. | |
The CAA said: "Whilst the administrator is reviewing the position the company is not expected to resume services in the near future and is contacting passengers who were due to travel to advise them to make alternative arrangements." | |
It had been hoped a new investor would be found to help the firm survive. | It had been hoped a new investor would be found to help the firm survive. |
It is thought the firm's staff - about 100 - were called in at about 0700 GMT to be informed of the decision. | It is thought the firm's staff - about 100 - were called in at about 0700 GMT to be informed of the decision. |
Highland Airways runs services between Cardiff and Anglesey, Stornoway and Benbecula in the Outer Hebrides and Oban and the Inner Hebrides. | Highland Airways runs services between Cardiff and Anglesey, Stornoway and Benbecula in the Outer Hebrides and Oban and the Inner Hebrides. |
Not covered | |
Other activities include aerial work, newspaper delivery to some Scottish islands, corporate staff shuttles and air charter. | Other activities include aerial work, newspaper delivery to some Scottish islands, corporate staff shuttles and air charter. |
So far no-one from the company has been available for comment. | So far no-one from the company has been available for comment. |
The authority said the company was not protected by the Atol scheme administered by the CAA and passengers who booked directly with the airline would not be covered. | |
However, if passengers paid the airline directly by credit card or a Link debit card they may be protected by the Consumer Credit Act. | |
If passengers booked their ticket through a travel agent they should speak to the agent. |