Aer Arann, the Irish regional airline entered teh Irish equivalent of US chapter 11 bankruptcy protection.
Aer Arann will continue flying under the protection of the courts and with a court appointed administrator at the helm. The decison was confirmed after the court was told that the airline was insolvent and cannot pay its debts. The airline said last night that its day-to-day operations would not be affected during the interim examinership period of 70 days and that all flights would operate as scheduled. This includes the regional flights operated by Aer Arann on behalf of Aer Lingus.
The court heard that the airline’s creditors include the bank AIB, which is owed €3.9 million, the Revenue Commissioners, the Dublin Airport Authority, Aer Lingus and the Irish Aviation Authority. AIB is prepared to provide a €1 million overdraft to the airline during the period of court protection, and Aer Lingus is supporting the petition.
The company is looking to secure additional investment, and to date three investors had expressed an interest. It is understood that the decision to petition for examinership was also prompted by the company’s difficulties in servicing its contracts with aircraft leasing companies. Aer Arann operates 13 aircraft. It employs 320 people at its bases in Dublin and Galway, as well as in Shannon, Cork, Waterford and the Isle of Man.
Aer Arann will continue flying under the protection of the courts and with a court appointed administrator at the helm. The decison was confirmed after the court was told that the airline was insolvent and cannot pay its debts. The airline said last night that its day-to-day operations would not be affected during the interim examinership period of 70 days and that all flights would operate as scheduled. This includes the regional flights operated by Aer Arann on behalf of Aer Lingus. The court heard that the airline’s creditors include the bank AIB, which is owed €3.9 million, the Revenue Commissioners, the Dublin Airport Authority, Aer Lingus and the Irish Aviation Authority. AIB is prepared to provide a €1 million overdraft to the airline during the period of court protection, and Aer Lingus is supporting the petition.
The company is looking to secure additional investment, and to date three investors had expressed an interest. It is understood that the decision to petition for examinership was also prompted by the company’s difficulties in servicing its contracts with aircraft leasing companies. Aer Arann operates 13 aircraft. It employs 320 people at its bases in Dublin and Galway, as well as in Shannon, Cork, Waterford and the Isle of Man.
| < Prev | Next > |
|---|
