Ascend Airways, a UK carrier company, has collapsed into liquidation, leaving 161 jobs at risk. The airline provided aircraft to carriers including Oman Air, Air Sierra Leone, and TUI Airways. Soaring fuel costs, rising domestic expenses, and an inability to secure contracts were cited as the main reasons for the collapse.
Insider Reveals Details of Collapse
An insider told The Sun: "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. It's to do with the economy, we couldn't get contracts, the UK is a lot more expensive than Europe. The fuel situation had a massive effect on it as well."
They added: "It's 40 per cent cheaper to use airlines in Europe than the UK because taxes are too high. We're not going to get paid for May and we have to go through the liquidators. You could get up to £750 a week but we're not going to get the full amount we're owed."
Failed IOSA Licence Bid
The company sought to secure an IOSA licence in March, which would have allowed them to use global routes, but the bid failed. The insider said: "We were quite surprised they took on more crew, I think they were banking on getting the IOSA." However, it was when the airline reportedly failed to pay its leasing company that the business ultimately came to an end.
The collapse of Ascend Airways highlights the challenges facing UK airlines, with higher operating costs compared to European competitors. The loss of over 160 jobs is a significant blow to the industry and the affected employees.
