Eastern Airways has suspended operations and cancelled all flights after filing a notice of intention to appoint an administrator, leaving parts of the UK without regional air links, including Cornwall’s publicly funded connection to London. The UK Civil Aviation Authority (CAA) has urged passengers not to go to airports and to make alternative arrangements.
This feature sets out what happened, why Cornwall’s route matters, how the Public Service Obligation (PSO) is funded, and which airlines could plausibly take over.
What happened to Eastern Airways
The airline halted services on 27 October 2025 while it explores options under creditor protection. Aircraft have been returned to lessors, and ticket sales have stopped. The CAA confirmed that for now, all Eastern flights are cancelled.
In the immediate aftermath, rail operators, including GWR have offered assistance to stranded passengers. There is no airline-led repatriation because Eastern is not part of an ATOL-protected package.
Cornwall Council and local media say no flights are operating on the “vital” London link from Cornwall Airport Newquay pending a replacement operator. The council says work to secure an alternative is underway.
Travellers’ rights and practical steps
If you booked directly with Eastern Airways, the CAA advises in its statement to contact your card issuer for a chargeback or your travel company if the flight was part of a package. For urgent trips, switch to rail or other airlines and keep all receipts if you intend to pursue a claim.
If you have near-term plans to reach Cornwall from London, the most dependable options in the next few weeks are likely to be GWR rail, the Ryanair service from London Stansted or flights to Exeter/Bristol with onward ground transport.
If you need a same-day long-haul connection, consider routing via Dublin until a London link is restored.
Why the Cornwall–London link matters
The Newquay–London route is designated and funded as a Public Service Obligation. PSOs are used when a route is socially or economically important but not necessarily commercially viable year-round. The UK Government confirmed in November 2021 that it would provide up to £4.3 million to support the Newquay and Dundee links, with up to £1.8 million channelled to Cornwall Council over two years to run the Newquay service.
Cornwall Council’s accompanying statement at the time underlined that the 4-year PSO would “ensure the route is maintained year-round”, reflecting its perceived importance for connectivity, tourism and inward investment.
In short, the PSO exists because the route helps keep Cornwall on the national and international map, particularly for short-break visitors, time-sensitive business trips and onward long-haul connections via London. When a PSO operator collapses, those benefits pause immediately.
Performance questions before the collapse
Load factors (a basic indicator of how full flights are) have varied on the Cornwall-London link across different operators and periods. During the period when British Airways operated the Heathrow connection (2019-20), industry commentary suggested average loads of around 80%. Under the latter PSO model to Gatwick, operated by Eastern Airways, load utilisation appears to have dropped, though published statistics do not provide a direct year-on-year comparison.
Immediate implications for Cornwall
Connectivity gap: With Eastern grounded, Newquay has no daily direct flights to a London airport under the current PSO. That raises the risk of lost short-break visitors and more complex journeys for residents and businesses until a replacement is named.
Economic knock-ons: Tourism bodies have long argued that the PSO route helps shoulder season demand and supports airport jobs and on-airport businesses. While the airport retains other routes, the London link has been the flagship year-round connection in recent years.
Who funds the PSO — and what happens next
PSO funding is shared between the Department for Transport (DfT) and Cornwall Council. The 2021 commitment set the modern template for support; any replacement contract will again depend on central and local government agreement and the tender outcome. A current parliamentary question tabled on 20 October 2025 asks DfT to set out the status of the proposed PSO grant, which companies have bid for, and when a decision is expected, indicating an active procurement timeline and political scrutiny.
Multiple outlets report that Cornwall Council is urgently seeking a new operator and that a name could be announced quickly, but no official award has been published at the time of writing.
Contenders to watch (analysis)
Eastern Airways
If Eastern Airways were to secure new funding or an investor during its protection period, a limited resumption of services could, in theory, follow. The airline has filed a notice of intention to appoint administrators, which allows a short window to seek rescue financing or a buyer. However, even if a deal emerged, restoring operations would require regulatory clearance, aircraft availability and renewed confidence from Cornwall Council and the Department for Transport. Given that the PSO tender process is already underway, a rapid comeback appears unlikely, but not entirely impossible if the company stabilises before a new contract is awarded.
British Airways
BA has historical form on this route. After Flybe’s 2020 collapse, BA operated Newquay–Heathrow on a PSO basis for part of 2020, with Cornwall welcoming the relaunch and industry sources noting strong demand at the time. BA also has the scale, slot expertise and fleet flexibility to operate seasonal and year-round variants if the business case is there. The key constraint is Heathrow slots and strategic fit. A Gatwick solution would be simpler operationally but may dilute premium connectivity (and load factors) compared with Heathrow.
Loganair
Loganair is now the UK’s largest regional airline and an experienced PSO operator elsewhere in the UK. It already flies seasonal services to Newquay from Scotland and has stepped in on other lifeline routes when competitors have exited. The carrier’s fleet of ATRs and Embraer regional jets is well-suited to PSO-style flying and thin off-peak demand. The question is whether London capacity and crew basing would stack up for Loganair this late in the planning cycle.
A return of BA CityFlyer or another IAG solution
A smaller-gauge London solution, for example, from London City on Embraer jets, would preserve a capital link and business-friendly timings. This would hinge on aircraft and crew allocation, and on whether DfT and Cornwall Council favour a Heathrow, Gatwick, or City outcome.
Isles of Scilly Skybus
As Cornwall’s own airline, Skybus has long experience serving isolated and low-volume routes between Land’s End, Newquay, Exeter and the Isles of Scilly. Some see echoes of Brymon Airways, the much-loved West Country carrier that once linked the Isles of Scilly, Newquay and Plymouth directly with Gatwick and Heathrow. Its operational base and local knowledge make it a theoretical contender for a wider South-West PSO link. However, Skybus is currently geared toward very short-haul island services using small aircraft, and there is no public indication that it seeks to expand into mainland trunk routes such as Cornwall–London.
Low-cost carriers (easyJet or Ryanair) under a PSO
Both airlines have operated flights to Newquay from London in recent years, though only Ryanair continues to serve the airport with limited, non-daily services to Stansted. However, a Public Service Obligation contract is a very different proposition. PSOs require fixed timetables, guaranteed year-round operation and strict reliability standards, none of which align with the flexible, profit-driven model of low-cost carriers. Neither easyJet nor Ryanair typically operates UK PSO routes, as capped fares, minimum-service clauses, and administrative oversight make them commercially unattractive. Even if either airline expressed interest, maintaining off-peak winter schedules with lower demand would likely prove uneconomic, leaving the PSO model better suited to smaller regional operators.
Wildcard: Emerald Airlines / Aer Lingus Regional
As with Dublin’s hub option, Emerald Airlines is experienced in thin regional markets. But it is primarily focused on Ireland-centric networks, and there is no public indication of a London PSO bid. The Dublin connection remains the more realistic angle for Emerald’s network as things stand.
What a replacement will be judged on
Reliability and resilience: Cornwall will want fewer cancellations and better winter resilience than the market has sometimes seen. The CAA’s push to publish more load-factor and performance data shows the direction of travel on accountability.
Airport choice: Heathrow offers premium connectivity and inbound tourism potential; Gatwick offers capacity and lower costs; London City offers business-centric timings but fewer long-haul connections. Cornwall’s 2021 PSO communications did not specify a specific London airport in perpetuity, potentially providing some flexibility for the tender.
Value for money and carbon: DfT policy on PSOs now explicitly balances regional connectivity with minimising carbon emissions and market distortion. Any winning bidder will likely face tighter environmental conditions and measurable service outcomes than in previous rounds.
Does Cornwall actually need a London air link?
The Cornwall–London PSO has always attracted mixed opinions.
Supporters argue that the route provides essential connectivity for a region distant from the capital and major international hubs, underpinning tourism, business travel and inward investment. They point to the long rail journey times, the value of same-day returns for government and corporate work, and the importance of easy access for overseas visitors connecting via London airports.
Critics, however, question whether public funds should continue to underwrite a service that primarily benefits a small share of travellers. With rail times improving and broadband infrastructure expanding, some argue that the link has become more of a convenience than a necessity. They also highlight the carbon cost of short domestic flights and note that Cornwall now enjoys better regional links to Manchester, Edinburgh, Dublin and other hubs that can feed international networks without requiring a London transfer.
The debate also reflects geography and perception. Cornwall remains physically and psychologically distant from London, and local leaders see a direct air link as a marker of inclusion in the national economy. Yet the broader shift in UK transport policy favours sustainability and balanced investment across rail, road and digital infrastructure rather than air subsidies alone.
In short, Cornwall’s need for a London air link depends on perspective. For businesses and inbound tourists, it is a fast gateway to the region. For some policymakers and environmental campaigners, it is an expensive and carbon-intensive privilege.
Air vs Rail – Door-to-Door Comparison
On a typical day, the door-to-door journey from central Newquay to central London takes around four hours by air and six hours by rail. Flying via Newquay Airport and Gatwick usually saves about two hours overall, even once check-in and transfers are included. However, the advantage can quickly narrow during busy periods or when weather or baggage delays occur. Rail may be slower, but it offers a predictable, all-weather service that arrives directly in the city centre without the added time or cost of airport transfers.
The broader lesson for regional air links
The Newquay–London story underlines the knife-edge economics of regional aviation. In good times and with the right operator and airport, load factors can look respectable. In leaner conditions, utilisation can drop below 50%, making it harder to justify the subsidy per seat. Policymakers are therefore asking PSO contracts (and airports) to prove clear social and economic value, not just convenience.
For Cornwall, the outcome of the imminent tender will determine how the county maintains its London connection. It seems clear that Cornwall County Council remains committed to keeping a PSO in place, but the exact shape of that service will depend on the bids received. What matters most now is a timely yet carefully judged decision rather than a quick fix.
What next?
A Cornwall County Council spokesperson has said: “We are aware of the situation with Eastern Airways, current provider of the Cornwall-London Public Service Obligation (PSO) air link.
“Eastern’s contract was coming to an end and therefore the process to appoint a new operator is already well under way.
“There will be a short-term loss of services until an interim provider is in place, but we hope to have new arrangements confirmed shortly to ensure this vital air link continues to connect Cornwall with the capital.”
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Accuracy and Disclaimer
Information in this article is correct to the best of our knowledge as of 29 October 2025. It is based on publicly available statements from the UK Civil Aviation Authority, Cornwall Council and other verified sources. The piece is intended for general information and analysis only and should not be taken as official travel advice. Readers are encouraged to check the latest updates directly with airlines, the CAA or Cornwall Airport Newquay before making travel arrangements.
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