Flyglobespan dismiss talk of collapse
29.09.08
Edinburgh based budget airline Flyglobespan has 'responded bullishly' to reports that it might be the next airline to go under, insisting that it was in good shape and would return to profit this year, the Scotsman reports. The airline, which operates flights to 23 destinations and employs around 1,300 staff worldwide, dismissed weekend rumours that it was in trouble.
As previously reported, bookmaker Paddy Power is offering short odds of 6-4 on Flyglobespan being the next aviation business to collapse, and there have been reports that the Civil Aviation Authority (CAA) is in discussions over the future of the firm.
But Flyglobespan chairman Tom Dalrymple yesterday told The Scotsman: ‘Unlike other airlines who have gone under, Flyglobespan has no debt. On the contrary, we have significant cash assets built up over many years of successful trading and, in addition, we have substantial property assets at home and abroad. We also have a proven business plan.’
The airline last year reported losses of £13 million after problems with unreliable leased planes on its North American routes. This combined with investment in new aircraft and the rising cost of fuel has hit its balance sheet. But Mr Dalrymple yesterday pledged that his firm would return to the black this year, boosted by multi-million pound plane leasing deals over the winter period.
He told the newspaper: ‘We have just had our most successful summer ever, with record load factors for our sector, and are set to turn winter – generally a difficult time for our industry – into a cash-generating time by leasing out a number of our planes to other southern hemisphere carriers who have need of extra aircraft for their high season. After last year's difficulties, we will be back in profit this year – and very well-positioned for the future.’
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