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[BUSINESS] · United Kingdom · 5 sources

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Cornwall Council faces scrutiny over £1.6m Eastern Airways debt

Cornwall Council and its subsidiary Corserv are facing scrutiny after Eastern Airways entered administration in November 2025, leaving a £1.6 million debt owed to the local authority. It was revealed during a council meeting that Corserv had considered placing a lien on an Eastern Airways aircraft on two separate occasions but did not proceed with the seizure.

The debt is now being covered by Cornish taxpayers. This financial issue follows the council's decision in February to scrap the publicly subsidised Public Service Obligation (PSO) route to Gatwick, a move prompted by projected taxpayer costs of up to £16 million over four years.

In addition to the airline debt, officials noted that £10 million in public funds will be required to support the operation of Newquay airport this year. Councillor Andrew Mitchell criticized the lack of credit control at the airport, noting that the debt owed by Eastern Airways was three times the amount owed to Heathrow.

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Andrew Mitchell · Cornwall Council · Corserv · Eastern Airways · Newquay Airport

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