Highland Airways in administration

Scottish airline Highland Airways has handed over the running of the business to PricewaterhouseCoopers, having entered administration.

Most of the firm's 100 employees will lose their jobs, while operations have been cancelled "with immediate effect", the Civil Aviation Authority said.

The airline's problems were exacerbated by the heavy snow at the beginning of this year, which led to cancelled flights and deepening debts. Potential investors had also pulled out at the last minute.

Bruce Cartwright, joint administrator at PwC, said: "The company had encountered trading difficulties including the loss of certain contracts."

He continued: "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. The directors have now concluded that the options of maintaining operations while introducing a new investor is no longer feasible."

The airline, which also operates in Wales, held a CAA operating licence and an air operating certificate. It ran a fleet of nine aircraft, and its services linked Cardiff and Anglesey, Stornoway and Benbecula in the Outer Hebrides, and Oban and the Inner Hebrides.

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