A leading airline has declared bankruptcy, resulting in the suspension of all its flight operations.
Over 3,000 passengers have been impacted as Royal Air Philippines was compelled to call off its entire schedule of flights. Reports indicate that between 3,000 to 4,000 travelers with bookings from January to March have been left without transportation and are now looking for refunds and alternative travel arrangements.
CEO Eduardo Novillas of Royal Air Philippines had previously indicated a drop in demand several weeks ago, notifying a travel agency in a letter before the holiday season. He highlighted a significant decrease in interest from key markets. Additionally, an economist from the Asian Development Bank mentioned that arrivals from China to the Philippines remained below pre-pandemic levels as of early 2025.
The airline’s official website has reassured customers that efforts are underway to process refunds and that flight operations may resume at an undisclosed future date. The company expressed gratitude for the patience and understanding of affected passengers.
Royal Air Philippines, also known as Royal Air, is under the ownership of the Cambodia-based Lanmei Group, known as the Lancang-Mekong Group. The carrier, supported by Chinese investments, was founded by Li Kun, the former president of Shenzhen Airlines and currently serves as its chairman.
Originally established as a charter service in 2002, Royal Air transitioned to a low-cost carrier model in 2018 after obtaining its commercial flight permit the previous year. The airline commenced passenger services eight years ago and at its peak, operated routes to various international destinations including Cambodia, China, South Korea, Hong Kong, and Taiwan.
This development follows closely after a British airline went into liquidation after a reported attempt to raise £20 million. Scottish company Ecojet Airlines, billed as the world’s first all-electric airline, was founded in 2023 by entrepreneur Dale Vince. Despite ambitious plans for long-haul flights and European routes, the airline faced liquidation proceedings in Edinburgh following a petition filed with the court.
At the launch, Mr. Vince emphasized the importance of transitioning to green aviation, expressing confidence in achieving sustainable practices. The appointment of provisional liquidators by Opus Restructuring was confirmed following a voluntary liquidation initiated by the airline’s board.
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