The Red Arrows had been billed as the highlight of the two-day festival.
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The Red Arrows will not be performing at Suffolk's popular air show.
The display team, billed as the highlight of the two-day Lowestoft Seafront Air Festival on Thursday and Friday, has pulled out.
One of the team has a family bereavement and all the Red Arrows' engagements over the next few days have been cancelled.
The news was announced by Brian Lewis, the show's flying display director, at a press conference on Wednesday afternoon.
A spokesman said the organisers realised it was a big blow.
"It may stop some people attending but there is still a lot of attractions in the air and on the ground."
The Royal Jordanian Falcons will be opening the show and will be replacing the Red Arrows as the main attraction.
The pilot ejecting second before the Harrier crash last year
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The Falcons were due at last year's show but could not make it because the team was weather-bound.
Last year the £250,000 show, which attracted 350,000, was marred when an RAF Harrier jump jet plunged into the sea yards from the beach in front of thousands of visitors.
The pilot managed to eject unhurt. No Harriers are flying at this year's show.
Next year's festival was also under threat earlier this year with the end of European funding.
Civic leaders were determined the event remained in the summer calendar as it pumps more than £11m into the region's economy.
Waveney District Council officers are looking at ways of cutting costs, developing better sponsorship deals and better marketing.