European Coastal Airlines (WL, Split) says it has suspended all operations until further notice. The seaplane operator said in a statement issued on Monday, October 3, that it would only resume flights once the regulatory environment had improved.

ECA blamed Croatia's regulatory authorities for taking "arbitrary" decisions that have negatively affected it operations since August when the Croatian Civil Aviation Agency (CCAA) first ordered it to suspend flights over safety concerns.

"European Coastal Airlines addressed these issues and explained our situation to the government of the Republic of Croatia, seeking support and supervision to avoid further arbitrariness by the administrative authorities who have prevented us from doing what we do best - connecting Croatia and beyond," the statement read. "European Coastal Airlines' shareholders therefore see no other alternative than to suspend operations for the time being."

Approximately 130 out of its 146 staff will also be retrenched come November 30.

"ECA will no longer invest in its Croatian seaplane project, until the current administrative situation is resolved and until clear and reliable conditions for the operations within the market have been set out," the statement said.

Unlike in August, Nordic Seaplanes (Aarhus) has said it is unaffected by ECA's suspension of operations.