3/08/1991: Air Europe Ceases Operations

DALLAS — Today, in 1991, Air Europe (AE), one of the United Kingdom's most prominent independent airlines, ceased operations.

Air Europe's collapse left 25,000 customers stranded, and 4,000 people lost jobs. Passenger numbers had dropped dramatically due to a deep economic recession in the UK and Europe, falling 55% for the 1991 summer season. 

Rapid expansion, a lack of tangible assets, and the airline's high-risk strategy had also failed, leaving the business massively overextended.

Early Days

AE took the air on May 4, 1979. The airline had been established a year earlier to fill the gap in the European charter market. This followed Laker Airways' (GK) and British Caledonian's (BR) decision to focus solely on their scheduled operations. On July 2, 1982, Air Europe signed an agreement for two Rolls-Royce-powered Boeing 757-200s. The first example arrived in April 1983. 

AE was one of the pioneers of Extended Range Twin Operations (ETOPS), working closely with fellow British 757 operator Monarch (MON) to gain approval for their aircraft.

AE launched ETOPS to the United States, Central and South America, the Caribbean, and Asia using its 757s in March 1988. The airline was an ETOPS pioneer. It worked closely with fellow British 757 operator Monarch (MON) to gain approval for their aircraft.

Taking on the Big Boys

The scheduled market was entered on May 2, 1985, between LGW and Palma (PMI). By 1989, AE operated 150 scheduled services per week across 16 routes, competing directly with established flag carriers. Thanks to its high aircraft utilization and lower labor costs, AE could undercut its rivals and offer attractive fares to passengers.

However, its plan to break into the long-haul scheduled market proved challenging. In 1990, the airline became a launch customer of the McDonnell Douglas MD-11. The goal was to use the aircraft on year-round scheduled flights to Canada, the US, Mexico, the Caribbean, Australia, and New Zealand.

Sadly, McD never delivered the type. Despite being the number one airline at LGW in the summer of 1990, holding 20% of all take-off and landing slots and operating more short-haul services than any other airline, AE was consigned to the history books a year later.

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