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HIGHLAND Airways, which operates Hebridean flights from Oban Airport, has called in administrators Pricewaterhouse Coopers to take over the running of the business, it was announced on Thursday.
All of the Inverness-based airline’s Thursday flights were cancelled and no further bookings are being taken.
The Civil Aviation Authority said operations had been suspended “with immediate effect.”
Highland Airways operated a fleet of nine aircraft, running services between Cardiff and Anglesey, Stornoway and Benbecula and Oban and the Inner Hebrides.
It had been hoped a new investor would be found to help the firm survive.
The CAA 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.
Argyll and Bute MSP Jim Mather said: “We have known for some time that Highland Airways were facing problems and we are sorry to learn that the company has exhausted all options to maintain operations. We are aware of various steps taken in recent weeks by the Minister of Transport to assist the company to maximise its cash flow but sadly it would appear that these proved unsuccessful.
“This is a particularly difficult time for those who work for and supply the company. My sympathies go out to those whose jobs are under threat and for those who have come to depend upon the service.
“We are still waiting for confirmation of what arrangements the administrator can make for any other suitably qualified company to meet the service commitments that are presently in suspension. This is seen as a priority by the Scottish Government.
“My colleague Alasdair Allan, MSP for Western Isles, sought assurances from the First Minister at today’s First Minister’s Questions and he was advised that the Transport Minister is seeking ways to ensure that the existing schedules be reinstated as quickly as possible. He also stated that Skills Development Scotland and other government agencies were already working to provide support and advice to the workforce.”
