Future of Kent airport based EUjet under threat
27.07.05
The future of Kent airport based budget airline EUjet is underthreat after the Bank of Scotland withdrew its support for the airlines owner, Planestation, yesterday.
Planestation's shares were suspended after the owner of Shannon and Kent airport based airline said its bank had pulled the plug on extra funding for the group. The company said it had requested the suspension, pending clarification of its financial position.
Planestation, an airport operator, that took over EUjet last year in a deal worth around £6 million. It recently announced plans to ease cashflow problems by selling a 75% interest in a business park near Kent Airport. But it emerged yesterday that its bank had decided against providing extra finance to support the company until the sale was completed(see this earlier Kent airport news story).
The company said its day-to-day operations would continue as normal and that EUjet flights operated on schedule yesterday. EUjet operates eight routes from Shannon and from Kent, plus two from Dublin. It merged with Planestation last year.
A spokesman said yesterday: 'Until now, the directors had no reason to believe that support from its bank would not be forthcoming. However, discussions with the company's bank over the last 48 hours have not been positive, and the company was informed this morning that the bank is no longer able to support the company with additional facilities.'
Debts are thought to total more than £22m. Bank of Scotland declined to comment.
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