Kent airport based EUjet stops flying
27.07.05
Over 5000 passengers have been left stranded away from home after the parent company of budget airline EUjet and Kent Airport filed for administration. PlaneStation, which owns both EUjet and Kent airport, had its shares suspended on Monday and went into voluntary administration today. EUjet stopped all flights.
The firm said its bank - Bank of Scotland, part of HBOS - had withdrawn financial support which it needed because of low passenger numbers (see this earlier Kent airport news story). The company said yesterday that its day-to-day operations would continue as normal and that EUjet flights operated on schedule.
But today EUjet stopped flying, almost certainly for good. The collapse of the airline is thought to have left around 5,000 passengers stranded abroad, unable to get home. The jobs of about 500 staff working at the airport or for the airline are also in doubt.
EUjet flew eight routes from Shannon and from Kent, plus two from Dublin. The first two passenger flights left Kent airport as normal today, but all 10 later flights were cancelled. Holidaymakers due to be flying back to the UK with EUjet were left trying to arrange alternative flights with other airlines.
In a statement to staff EUjet chief executive PJ McGoldrick said the failure to secure funds from the bank meant the airline could not be kept operational. McGoldrick said: 'It is with regret I must advise you that EUjet has had no alternative but with immediate effect to suspend all airline operations and appoint an administrator in Ireland [the airline is Irish registered].'
EUjet began commercial flights in September 2004 but passenger numbers have been well below predicted levels. The airline hoped to have 500,000 passengers in its first year but in its first 11 months flights have carried only 330,000 people. A statement on the airline's website says: 'please be advised that due to unforeseen circumstances EUjet has had to suspend all operations'.
McGoldrick said passengers would be able to get refunds from their credit card companies, however a spokeswoman for the Association of British Travel Agents said clients with future bookings were unlikely to get any sort of refund unless they had spent more than £100 and paid by credit card.
PlaneStation said it needed a cash input because of low passenger levels, meaning lower than expected income but said talks with the bank had 'not been positive'. Debts are thought to total more than £22m. Bank of Scotland declined to comment.
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