Major airline shuts down as all flights cancelled and passengers left ‘in limbo’
Royal Air Philippines has cancelled all of its commercial flights after entering administration, with up to 4,000 passengers stranded and seeking refunds from the Manila-based carrier
Major airlines collapse into liquidation with all flights cancelled(Image: Getty)
A major airline has collapsed into administration after axing all commercial operations. Royal Air Philippines has scrapped every one of its commercial flights, leaving more than 3,500 passengers in limbo.
Reports suggest the Manila-based carrier’s sudden shutdown has left approximately 3,000 to 4,000 travellers with bookings from January through March scrambling for refunds and alternative travel arrangements. The airline’s website states: “We are working on providing refunds and hope to resume flights at an unspecified date in the future.
“Thank you for your patience and understanding. We eagerly anticipate welcoming you aboard soon.” Royal Air’s chief executive Eduardo Novillas had already flagged struggling demand weeks beforehand.
In correspondence with a travel agency prior to Christmas, he cautioned the carrier would suspend commercial operations by January 4, Philstar reported. Novillas highlighted “significantly low” appetite from crucial markets.
Asian Development Bank economist Jules Hugot observed that arrivals from China to the Philippines remained substantially below pre-Covid pandemic levels heading into early 2025.
Royal Air Philippines, commonly known simply as Royal Air, is controlled by the Cambodia-registered Lanmei Group, also called the Lancang-Mekong Group, reports the Express.
The carrier is supported by Chinese funding and was established by Li Kun, the former chief of Shenzhen Airlines, who currently holds the position of chairman. Initially established in 2002 as a charter operation, Royal Air pivoted towards a budget airline model in 2018 following the acquisition of its commercial flight licence the year before.
The carrier’s inaugural passenger service departed eight years ago, and during its heyday the airline ran routes to numerous international destinations, including Cambodia, China, South Korea, Hong Kong, and Taiwan.
This development arrives just weeks after British green investor Dale Vince scrapped his previous plans to launch the UK’s first zero-emission airline.
His scheme involved purchasing older Twin Otter and ATR 72 aircraft and retrofitting their kerosene-powered engines to operate on hydroelectric technology, but the venture was eventually abandoned before it could progress.
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