BusinessBusiness RecoveryHighland Airways collapses

Highland Airways collapses

Scottish airliner goes into administration- PwC at the controls

Partners at PwC have been appointed as joint administrators of Highland
Airways.

The Scottish airliner, which employs close to 100 people went into
administration yesterday at the request of the company’s directors, PwC said.

Bruce Cartwright, joint administrator and head of business recovery services
at PwC in Scotland, said Highland Airways had collapsed because it could not
carry on trading while waiting for a new investor.

He also said it was inevitable that there would be a substantial number of
redundancies.

“The directors have now concluded that the option of maintaining operations
while introducing a new investor is no longer feasible,” said Cartwright.

“The company had encountered trading difficulties including the loss of
certain contracts. As a result they were in discussion with a number of parties
over a period of time with a view to developing a new and viable operating
model.”

All flight operations were stopped with immediate effect at the carrier which
operated a fleet of nine aircraft on various contracts including routes from
Inverness and Oban to the Western Isles, and Cardiff to Anglesey.

The company is currently in contact with passengers who had been expecting to
travel in the coming weeks.

The PwC team will be working with contracted customers to ensure an orderly
handover of services to new operators.

“It is inevitable that there will be a substantial number of redundancies but
we will endeavour where feasible to assist the work force in securing employment
with the new service providers,” Cartwright added.

Further reading:

Scotland’s
biggest airline calls in PwC administrators

Related Articles

PwC must face MF Global lawsuit over accounting advice

Accounting Firms PwC must face MF Global lawsuit over accounting advice

1y Richard Crump, Writer
PwC’s business recovery services team appoints four new partners

Accounting Firms PwC’s business recovery services team appoints four new partners

1y Richard Crump, Writer
MPs call on FRC to widen BHS audit probe into PwC

Accounting Firms MPs call on FRC to widen BHS audit probe into PwC

1y Richard Crump, Writer
FRC investigation launched into PwC's BHS audit

Audit FRC investigation launched into PwC's BHS audit

1y Kevin Reed, Writer
UK votes to leave EU – accountancy profession reacts

Accounting Firms UK votes to leave EU – accountancy profession reacts

1y Fraser Simpson, Reporter
Take part in our 'Seven days in Accountancy' quiz

Accounting Firms Take part in our 'Seven days in Accountancy' quiz

2y Fraser Simpson, Reporter
New consortium enters fray to buy BHS empire

Accounting Firms New consortium enters fray to buy BHS empire

2y Chris Warmoll, Writer
PwC questioned over BHS ‘going concern’ audit

Accounting Firms PwC questioned over BHS ‘going concern’ audit

2y Chris Warmoll, Writer