PricewaterhouseCoopers (PwC) in Scotland have been appointed as joint administrators to the Scottish airline, Highland Airways.

The appointment was made at the request of the directors and all flight operations have ceased. The company, which employs around 100 people, operated a fleet of nine aircraft on various contracts including routes from Inverness and Oban to the Western Isles as well as Cardiff to Anglesey.

Bruce Cartwright, joint administrator and head of business recovery services at PwC in Scotland, said: "The company had encountered trading difficulties including the loss of certain contracts. As a result they were in discussion with a number of parties over a period of time with a view to developing a new and viable operating model. The directors have now concluded that the option of maintaining operations while introducing a new investor is no longer feasible." He added that PwC would be working with existing customers with a view to services being handed over to new operators wherever feasible.