AT ONE point late in the marathon, four-hour High Court hearing on Aer Arann’s future yesterday, its examiner, Michael McAteer of Grant Thornton, sat with his head in his hands and appeared exasperated at the Revenue Commissioners persistent objections to the terms offered to creditors under his scheme of arrangement for the airline.
Aer Arann’s future appeared in the balance. Some tense moments followed before a deal was brokered that allowed Ms Justice Mary Finlay Geoghegan to give her approval in principle to the rescue plan.
After the hearing, Mr McAteer was “delighted” with the outcome. “This puts the company on a sound financial footing . . . and hopefully Aer Arann can now expand from here with Stobart.”
Seán Brogan, managing director of Stobart Ireland, had kept a watchful eye on yesterday’s proceedings.
“We’re delighted that this long process is over and we now intend to concentrate on delivering what we set out to do,” he told The Irish Times after the hearing.
Stobart set up in Ireland 2½ years ago and the transport and logistics group has a large facility in Dublin Port. Mr Brogan said it employs about 200 staff here and expects to generate revenues of €40 million in 2011.
The company is developing an airport at Southend as a hub for London – in time for the 2012 Olympics. A rail line has been built that will offer journey times of 50 minutes to Liverpool Street tube station. “Southend will allow us to build Aer Arann,” Mr Brogan said. “It’s got huge potential.”
Aer Arann will fly to London Southend from Waterford and Galway from next March. “It’s all about Southend for us,” he said of the company’s €2.5 million investment in Aer Arann.
Aer Arann chief executive Paul Schutz was also a relieved man yesterday, with 300 jobs now saved.
“It’s been a very tough time for our staff,” he said.
“We can get back to work now and get on with running a regional airline.”
Mr Schutz said Aer Arann’s franchise deal with Aer Lingus continues to perform “ahead of expectations” and will go from five to seven aircraft next March.
“It really is a rosy outlook for us at this stage,” he said.
