Former F1 boss Paul Stoddart could rescue European Cargo

Former Formula One team owner Paul Stoddart may buy European Cargo out of administration, reviving the UK freight airline he helped create during the COVID-19 pandemic.

As reported by Sky News, Stoddart’s European Aviation is on the verge of agreeing a deal to acquire Bournemouth-based European Cargo. The deal could be announced as early as Thursday, 20 August. Neither Stoddart nor European Cargo’s administrators had commented publicly when Sky News reported the talks.

If completed, the transaction would bring European Cargo back under the control of its founder after the airline entered administration in June.

European Cargo could return to the skies

European Cargo appointed Teneo Financial Advisory as administrator on 3 June 2026.

Companies House filings confirm the appointment and show that the administrators subsequently filed their proposals and a statement of affairs in July. The airline had stopped flying shortly before entering administration. Its last revenue service was operated on 19 May, after which its six converted Airbus A340-600 freighters were parked.

Sky News reports that the proposed Stoddart deal would involve around 16 aircraft, of which seven are believed to be flight-ready. Details of exactly which aircraft would form part of the transaction have not yet been disclosed.

The deal could provide a rapid route towards restarting European Cargo’s operation, at least in part. Any return to commercial flying would also depend on the company meeting regulatory, financial and operational requirements.

Nearly 200 employees were made redundant after the appointment of administrators, according to Sky News.

Why European Cargo collapsed

European Cargo was established in late 2020 as demand for air freight surged during the pandemic. The operation grew out of Stoddart’s European Aviation business, which used former passenger Airbus A340-600s to transport medical supplies from Asia to the UK. One of the aircraft famously carried a large “Thank You NHS” message when it transported thousands of surgical gowns from China in April 2020.

European Cargo subsequently developed the A340-600 into a more permanent freighter operation. Six aircraft were later converted to a passenger-to-freighter configuration. European Cargo also established a position at Bournemouth Airport and expanded operations from Teesside International Airport before its collapse.

However, the economics of operating four-engined A340s became increasingly challenging as the extraordinary pandemic-era air cargo market normalised.

European Cargo reported a $26 million net loss for 2024, according to ch-aviation. Reduced flying activity, working capital pressure and rising operating costs pushed the carrier into administration.

Analysis by The Loadstar also pointed to customer concentration as a potential weakness. European Cargo had become heavily dependent on China-related freight programmes, including the growth of e-commerce traffic.

The four-engined A340 also faces an inherent fuel-efficiency disadvantage compared with newer twin-engined freighters.

Stoddart would be returning to an airline he founded

The proposed acquisition would mark a homecoming for Stoddart.

European Aviation dates back to 1989 and has operated a variety of charter and aviation businesses. Stoddart later became much better known outside aviation after buying the Minardi Formula One team in 2001. He owned Minardi until 2005, when it was sold to Red Bull. The team subsequently became Scuderia Toro Rosso and is now known as Racing Bulls.

Stoddart also launched Australian business-class airline OzJet, which initially operated Boeing 737s between Melbourne and Sydney. It was acquired by Strategic Group and ceased operations in 2012, after Strategic Airlines declared insolvency.

Stoddart’s connection with European Cargo continued through the pandemic before his interests in the airline were progressively sold. Sky News reports that Stoddart sold a 49% stake in 2022 and disposed of the remaining 51% two years later.

Companies House records show European Aviation Limited ceased to be a person with significant control of European Cargo in November 2024.

What’s next for European Cargo?

A completed acquisition would not mean the immediate return of European Cargo’s former operation.

The airline would need sufficient aircraft, crews, customers and working capital to build a sustainable cargo network. Its A340-600 freighter fleet still leaves the company particularly exposed to rising fuel costs. However, Stoddart’s existing aviation businesses and familiarity with European Cargo’s aircraft could give a revived operation advantages over a new investor attempting to restart the carrier.

For now, the transaction has not been completed. But if Stoddart succeeds in buying European Cargo out of administration, one of Britain’s most unusual cargo airlines could fly again.