Aer Arann has said expects to exit examinership on Wednesday next, 10th November. This follows the decision of Ms. Justice Mary Finlay Geoghegan in the High Court to approve in principle the Scheme of Arrangement proposed by Examiner to Aer Arann Mr. Michael McAteer of Grant Thornton.
Formal approval of the scheme is set to be granted in the High Court tomorrow morning, Friday 5th November, and Justice Finlay Geoghegan will be asked to set November 10th as the ‘effective date’ for the airline to return to normal trading.
The approval of the scheme safeguards all 320 jobs in Aer Arann and more than 200 indirect jobs in regional airports throughout Ireland.
“This is a good day for Aer Arann and we are now very well positioned for the future” said Mr.Paul Schütz, the airline’s Chief Executive, after the High Court hearing.
“We have to thank our staff, our suppliers and our loyal customers for getting us through a difficult period”, continued Mr. Schütz, “and we can now look forward with confidence to a period of stability and growth. “We have a viable business model and we will continue to build on our core market activity providing strategic air connectivity between the regions and major hubs in Ireland and the UK”
“We have seen the demand for regional air connectivity even throughout the examinership period with our own Aer Arann services performing very well and our franchise flights operated as Aer Lingus regional going from strength to strength” Mr. Schütz concluded.
A consortium comprised of Mr. Padraig O’Ceidigh and multi modal transport company Stobart Group Limited are investing €3.5million in Aer Arann with a further €1.5million being made available for working capital.
Mr. O’Ceidigh is the current owner of Aer Arann and he will remain the largest shareholder and Executive Chairman of the company.
Stobart Group Limited is a major freight, logistics and warehousing company that owns London Southend Airport which is 35 miles from Canary Wharf and 40 miles from Central London. The company is listed on the London Stock Exchange and has a market capitalisation of circa £400million Sterling.
Commenting after the Court Mr. O’Ceidigh said that “as an island national it is vital that we have a strong and competitive aviation industry to help promote economic revival”.
“Aer Arann now has a platform from which it can grow and develop”, he continued, “and this is particularly important in the regions served by Aer Arann where air connectivity is a fundamental part of the social and economic infrastructure”.
“Jobs must be created and maintained, not just in aviation but across all sectors, as we work to help the country emerge from its economic difficulties” continued Mr. O’Ceidigh, “and a vibrant regional airline is central to that aim”.
Stobart Ireland employs 200 people in Dublin and Mr. Sean Brogan, the Managing Director of Stobart Ireland expressed his satisfaction with the decision of the High Court saying that Stobart Ireland was pleased to reach an operational agreement with Aer Arann.
Mr Brogan, who will become an Aer Arann Board Director said: “This alliance creates a platform to expand the reach and capacity of two complementary companies. For Stobart, it is an important part of our development plans and further strengthens our competencies across the transport modes. For air and freight transport users, the possibilities offered by London Southend Airport, just 50-minutes from the heart of London, are considerable. We look forward to advancing our plans with Padraig and the full Aer Arann team over the coming period”, Mr Brogan concluded.
The High Court was also told that a further €2.2 million is to be invested in Aer Arann when it exits examinership by Mr. Tim Kilroe who will become a significant shareholder and a Board Director.
The investment by Mr. Tim Kilroe Jnr. renews the Kilroe family connection with Aer Arann. In 1981 his father, Mr. Tim Kilroe Snr., purchased a two-thirds shareholding in Aer Arann and he remained centrally involved in the airline until the airline was sold to Mr. O’Ceidigh in 1994.
Mr. Kilroe said he is “delighted to be involved in Aer Arann again at such an exciting time when the airline has excellent potential to grow.”
“The involvement of Stobart Group, the opportunity to develop services to London Southend and the franchise agreement with Aer Lingus are all critical elements that will enhance the airline’s future prospects”, concluded Mr. Kilroe.
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