The wet-lease carrier Ascend Airways announced on Tuesday, April 28, that it would surrender its UK Air Operator’s Certificate (AOC) and return its six Boeing 737 MAX 8s to lessors. According to an insider quoted by The Sun, the company is going into liquidation.
Series of issues that led to Ascend Airways’ downfall
A subsidiary of the Irish-based Avia Solutions Group since 2023, a provider of ACMI services (aircraft, crew, maintenance and insurance), Ascend Airways’ wet-leasing operations consist of offering aircraft for other airlines to operate.
The carrier cited rising jet fuel prices triggered by the war in Iran as the main reason for giving up the UK AOC it had obtained only two years ago.
“This volatility has created a challenging outlook for the upcoming summer season, with many carriers already reducing capacity,” Ascend Airways said in a statement.
“A lack of reciprocal wet leasing rights for UK carriers, combined with a higher cost base, have made the UK certificate a more expensive and less agile option compared to EU AOCs,” the company added.
Reliability issues with the early configurations of the type’s CFM International Leap-1B engines also played a role, as the carrier stated they resulted in higher maintenance demands and affected the availability of its aircraft.
Staff surprised by liquidation news
According to an inside source quoted by The Sun, Ascend Airways informed staff yesterday of the imminent shutdown of operations.
“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 said.
The company’s leadership reportedly waited until a flight from Muscat landed safely at London’s Stansted Airport (STN) to make the public announcement.
The soaring financial pressure had been cause for concern for months, The Sun reported. There were hopes that an IOSA licence (IATA Operational Safety Audit) would be secured in March to unlock global routes, but the bid failed.
The Sun’s source expressed concern with May’s paycheck:
“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.”
The news surprised many as Ascend Airways had recently recruited more crew.
“I think they were banking on getting the IOSA,” the insider added.
Ascend Airways stated that it had met all its April payroll obligations and that employees would receive ongoing support.
The carrier added that:
“The airline maintained full operational compliance throughout the winter season, meeting contractual obligations or, where necessary, exiting agreements in an orderly and agreed manner.”
The company’s statement also mentioned efforts to minimise the disruption to passengers and to its aircraft lessors.
What do you think of this sudden suspension of Ascend Airways operations? Share your thoughts in the comments.
