31/08/2010

Examiner Appointed To Aer Arann

The High Court has appointed an Examiner for troubled airline, Aer Arann.

Aer Arann said it intends to operate normally during the period of examinership and intends to fly all Aer Arann services and all Aer Lingus Regional services operated under the airline’s franchise agreement with Aer Lingus.

No flights have been cancelled or are planned to be cancelled and reservations can continue to be made on www.aerarann.com. Aer Arann said it intends there will be no impact on customer travel or bookings as a result of the move into examinership.

A spokesman for the company said: "Following the High Court hearing on 8th September Aer Arann expects to remain in examinership for an initial period of up to 70 days.

"During that time the company will benefit from the protection of the Court from its creditors so that it can re-organise and re-structure the business. Aer Arann and the Examiner will also use the time to negotiate with potential investors and a number of parties have expressed their interest in the airline."

Yesterday evening, Ms Justice Maureen Clarke appointed Michael McAteer of Grant Thornton as Interim Examiner to the airline. The petition to enter examinership was made by the company following a resolution of its Board of Directors.

Ms Justice Clarke set 8th September as the date for a full hearing of the company’s application and in the meantime Aer Arann is in interim examinership and under the protection of the Court.

The company had been trading well in the first quarter of 2010 but following the losses of the previous two years it did not have the cash reserves to deal with the downturn precipitated by the volcanic ash crisis in the second quarter.

Aer Lingus said it will continue to work with Aer Arann on the provision of services through the franchise agreement between the airlines. All bookings for Aer Lingus Regional services can continue to be made with confidence on www.aerlingus.com

(DW)

Related Northern Ireland Business News Stories
Click here for the latest headlines.

29 November 2001
Irish airport sector hit by further redundancies
It is thought that over 200 jobs are under threat at Dublin Airport following reports that Servisair has issued protective redundancy notices to workers at the site.
01 December 2008
Ryanair Flies Into Takeover Turbulence
There's a multi-million euro bid for Aer Lingus on the table today as budget airline Ryanair makes a fresh takeover offer. The all-cash offer would value Aer Lingus at €748m euros (£619m) a lot less than the previous offer for Aer Lingus, which valued it at €1.5 billion.
17 December 2008
Revamped Ryanair Offer Shot-Down
Aer Lingus has rejected the Ryanair offer despite a revised bid from the budget airline yesterday. The rejection comes in spite of two major changes to the initial hostile takeover offer, with the Aer Lingus Chairman Colm Barrington dismissing the offer as "nothing new".
02 June 2009
Ryanair Flies Low
The budget airline Ryanair - which flies from two bases in Northern Ireland - has revealed financial returns showing a major nosedive in operating profits. Ryanair plunged into the red by €169.2 million (£145.9m) in the year to March after being hit with a 59% hike in its fuel bill.
14 February 2020
Co Down Drainage Firm Reduces Pollution With New Tech
A Co Down start-up has developed new technology to reduce environmental pollution levels by controlling water and wastewater levels in drainage networks.