EUjet goes into liquidation
09.10.05
EUjet, the Shannon-based airline that went into examinership (receivership) in July, has failed to attract any further investment and has now been put into liquidation.
The High Court was told last week that the company's examiner, Dublin accountant John McStay, had tried to organise a rescue package, but was unable to source enough finance to keep the company afloat. The court formally wound up the company and appointed McStay as liquidator.
It is understood that McStay had been in talks with a businessman from continental Europe in recent weeks about a potential investment. However, the businessman pulled out of the deal after failing to convince his backers to inject capital into EUjet.
A number of other potential investors had backed away from EUjet in late August, following the sale of Kent Airport, a prime asset by the airline's parent company. PlaneStation, the British airport operator that bought EUjet last year, sold the airport for £17million to Infratril, owners of Glasgow Prestwick airport. PlaneStation is in administration and its stock listing has been suspended.
McStay had been in talks with a number of parties who were interested in buying the airline and the airport. However, the investors withdrew their interest following the sale of the airport.
EUjet ceased operations on July 29 with the loss of 200 jobs, 50 of which were in Shannon. More than 2,000 customers are owed €700,000. The move came after bankers for PlaneStation decided not to invest more money in the firm.
PJ McGoldrick, a former chief executive of Ryanair, established the company in 2002 as a wet lease operator', before moving into low-fare scheduled services. He resigned as chief executive of EUjet last September following the sale to PlaneStation, but returned to the role earlier this year.
EUjet's success was contingent upon carrying at least 800,000 passengers a year. In June, it carried just 35,414 passengers, with almost half the seats in its planes empty.
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