Jet fuel shortage concerns grow after UK airline which serves TUI collapses
A UK airline which supplies for the likes of Oman Air, Air Sierra Leone and TUI Airways has entered liquidation, as the war in Iran continues to play havoc with oil prices and jet fuel shortages are looming.
Ascend Airlines supplied flights from Gatwick and Stansted, but has now gone into administration, announcing the cancellation of all flights with immediate effect.
The Sun has reported that staff were sent an email breaking the bad news, according to a company insider.
What has caused Ascend Airlines to go into administration?
Company bosses blamed economic pressures for the collapse, and referred to the knock-on impact the Iran conflict is having on the jet fuel crisis.
They said: “It’s to do with the economy, we couldn’t get contracts, the UK is a lot more expensive than Europe.
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"The fuel situation had a massive effect on it as well."
The staff member added: "It’s 40 percent cheaper to use airlines in Europe than the UK because taxes are too high.
"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 has also now sacrificed its UK Air Operator’s Certificate (AOC).
The airline was originally founded in 2004, but was only operating under this name for three years. It was previously known as Synergy Aviation before the rebrand.
The company had a fleet consisting of one Boeing 737-800 and six Boeing 737 MAX 8 aircraft.
Which airlines did Ascend supply?
Ascend was responsible for supplying aircraft to the likes of Oman Air, Air Sierra Leone and TUI Airways, and also supplied fully-crewed planes to other airlines.
Dan Jorgensen, the EU energy commissioner, told Sky News it's 'very likely' holidays will be affected by the conflict in the Middle East.
He said Europe is in a 'serious crisis' thanks to the rising prices and instability of the imports of oil.
“Even if we do everything we can do, if the jet fuel is not there, then it’s not there.
“It is primarily a crisis of prices and not yet a crisis of supply, but unfortunately we cannot be sure to prevent a crisis of supply, especially on jet fuel in the future, if the crisis continues.”
ACI Europe agreed, saying: “If the passage through the Strait of Hormuz does not resume in any significant and stable way within the next three weeks, systemic jet fuel shortage is set to become a reality.”
Jen Thomas