UK airline goes into liquidation after just three years of operations, what's the reason behind it?
UK carrier Ascend Airways, which provided aircraft to carriers such as TUI Airways, has entered liquidation.
UK carrier Ascend Airways has entered liquidation after just three years of operations. Initially launched as Synergy Aviation in 2004, the company became Ascend Airways in 2023. In 2023, the company released a press release which read: “Avia Solutions Group, one of the world’s largest ACMI providers, has acquired a UK-based airline operator Synergy Aviation, Ltd., later to be rebranded to Ascend Airways. The newly purchased business, which has an Air Operator Certificate (AOC) and Type B Operating License from the UK CAA, will enable the Group to strengthen its position in the UK aviation market.”
At the time, Jonas Janukenas, CEO of Avia Solutions Group, said, “We have been present in the UK aviation market for over 10 years, managing MRO and Charter Brokerage businesses. Having a UK AOC will create new opportunities for the Group in the UK and will enable us to expand the geographic reach of our ACMI and Charter services.”
According to reports, UK carrier Ascend Airways entered liquidation on Monday April 27. A source told The Sun that “It’s gone bust today, we got the news this afternoon. We’ve all been given the letters that it’s all going into liquidation.”
The insider also told The Sun that “It’s to do with the economy, we couldn’t get contracts, the UKis a lot more expensive than Europe. The fuel situation had a massive effect on it as well.”
One company that has benefited from the Iran war boosting fuel prices is BP who has more than doubled their profits. Meg O Neill, BP’s CEO has said: “It’s a privilege and an honour to serve as bp’s CEO. I join at a time when our industry is operating in an environment of conflict and complexity, playing a vital role in keeping energy flowing. bp’s team has been working relentlessly to keep our assets producing safely, reliably and efficiently. We are working with customers and governments to get fuel where it’s needed, helping minimize disruption and the impact it can have on people’s lives.
Earlier this month, Michael O’Leary, the chief executive of Ryanair spoke about how the UK is the most vulnerable country in Europe to potential jet fuel shortages and said: “Of all the European countries at the moment, the one that is most vulnerable is the UK because of the market share that the Kuwaitis have here.
“There could be a surplus of jet A-1 fuel in the Middle East, but you have still got to ship it to Europe and we don’t know when or how that happens.”