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Problems for north-south airline North-south air flights grounded
(about 2 hours later)
The future of the north to south Wales air route is in doubt after its operators were thought to have gone into administration. Planes flying the north to south Wales air route have been grounded.
Inverness-based airline Highland Airways is understood to have called in Pricewaterhouse Coopers. Highland Airways that operated the service has entered administration with Thursday morning's flight cancelled and no further bookings being taken.
A morning flight has been cancelled and no further bookings are being taken. Administrator Pricewaterhouse Coopers confirmed the company was "encountering trading difficulties."
A Welsh Assembly Government spokesman said it would contact the administrators and take steps to continue the "vital service". Deputy First Minister Ieuan Wyn Jones said the route was a "huge success" and the Welsh Assembly Government would take action to restore it.
Highland Airways was awarded a three-year contract to run the north-south Wales route from May 2007.Highland Airways was awarded a three-year contract to run the north-south Wales route from May 2007.
Its financial problems came to light at the start of the year after the spell of severe wintry weather resulted in cancelled flights and a worsening debt situation.Its financial problems came to light at the start of the year after the spell of severe wintry weather resulted in cancelled flights and a worsening debt situation.
But it had been hoped a new investor had been found to help the firm survive.But it had been hoped a new investor had been found to help the firm survive.
It is thought that the firm's staff - numbering about a hundred - were called in at 0700 GMT to be told about the decision. The firm's staff - numbering about 100 - were called in at 0700 GMT to be told about the decision.
The 0730 GMT flight to Anglesey was cancelled on Thursday, Cardiff Airport has confirmed.The 0730 GMT flight to Anglesey was cancelled on Thursday, Cardiff Airport has confirmed.
A Welsh Assembly Government spokesman commented: "We were sorry to learn that Highland Airways has gone into administration and that the service between Cardiff and Valley is not operating. The company had encountered trading difficulties, including the loss of certain contracts Bruce Cartwright, joint administrator
"We are waiting to establish contact with the administrator to find out their plans. Mr Jones said: "This service as been a huge success with almost 40,000 passengers using it since it started.
"Once we know the position, we will be taking appropriate steps to continue running this vital service." "It has far exceeded our expectations and we will now work tirelessly to minimise any break to flights.
"The unfortunate position of Highland Air has nothing to do with the performance of this route and the company's problems are related to its wider business.
"We are determined to keep the link operating and ensure there is minimum disruption to passengers."
He said the assembly government would look for short-term tenders on Monday with the aim of restoring the service as soon as possible after the Easter holidays.
"Our long term objective is to appoint a new operator with a four-year contract. We will be doing this through a further tendering process at the European level, " he added.
Lost contracts
Highland Airways also operates air services to the islands and Scotland fisheries protection air patrols.Highland Airways also operates air services to the islands and Scotland fisheries protection air patrols.
So far no one from the company has been available for comment. Bruce Cartwright, joint administrator and head of business recovery services at PricewaterhouseCoopers in Scotland, said: "The company had encountered trading difficulties, including the loss of certain contracts."
He said they would be working with contracted customers to ensure an orderly handover of services to new operators wherever feasible.
Earlier this week the Liberal Democrats called for the twice-daily Anglesey-Cardiff flights to be scrapped, and its public subsidy used on "green public transport".Earlier this week the Liberal Democrats called for the twice-daily Anglesey-Cardiff flights to be scrapped, and its public subsidy used on "green public transport".
The service has £800,000 a year funding from the assembly government.The service has £800,000 a year funding from the assembly government.