Flyglobespan keeps flying ‘for now’
16.11.09
Edinburgh-based budget airline Flyglobespan 'staved off collapse with a last-ditch cash injection on Friday evening', the Independent reports. However, Scotland’s largest airline denied the reports that it is in danger of collapse and revealed that it had secured investment that will allow it to ‘continue to prosper and grow.’
It is reported that Flyglobespan's financial problems were sparked by a delay in receiving payments from E-Clear, its credit card processing company. According to the Independent administrators were lined up to handle the airline's collapse, but directors at Globespan Group managed to secure new funding at the 11th hour. It added that 'it is not known whether the additional cash has secured the long-term future of the airline.'
The newspaper also claims that the Civil Aviation Authority, the industry regulator, was informed about the possible collapse of ‘an airline’, and contingency plans to repatriate thousands of passengers who would have been left stranded by a collapse were drafted.
However, the airline, which employs about 1000 people across the UK, said in a statement that it had been negotiating the increased funding for months. It said: ‘Flyglobespan today confirmed that it had successfully secured a financial investment package that will see Scotland’s leading airline continue to prosper and grow. For the past few months, the airline has been in negotiations with an investment company keen to secure a strong position within the travel sector.’
Founder and Chairman Tom Dalrymple said: ‘In the past few months I and my senior executives have received a number of presentations from parties interested in investing in our business. I am pleased to say that the chosen investor has the financial strength and vision to take the business forward to its natural next level.’
A spokesperson for the investment company involved, Halcyon Investment, said: ‘We have great belief in the Globespan senior management and its brand positioning in the market place.’
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