Budget's row with Regulator adjourned

A row between Budget Travel and the aviation regulator over what the company claims are 'unreasonable and unlawful pre-conditions' for renewal of its licence has been adjourned at the High Court.

The case by Budget against the Regulator was mentioned before Mr Justice John Hedigan today, who agreed to adjourn it to Monday after being told the parties are trying to settle the dispute.

Budget has claimed the Regulator's actions are greatly hampering the company's ability to carry on its business and are jeopardising the livelihoods of its 189 employees.

The company had been told by the Regulator not to take on any new business since last Monday while it awaits a new licence.

Budget's Finance Director Eileen O'Sullivan said in a sworn statement that it is considering 'all choices' available to it in terms of its restructuring, including seeking court protection.

Budget claims the regulator effectively shut down its business from Monday last because Budget's parent company had declined to give an 'open-ended and unlimited' guarantee for all liabilities of Budget.

It claims the Regulator has failed to make a decision on its application to renew its licence, due to expire on October 31 last.

In an email last Tuesday, the regulator said: 'The Commission is not refusing to issue you with a licence; it has set out the requirements to be met before a licence can issue and once met, the application will be deemed complete and sufficient to conclude the process with the isuse of your new licence.'

Budget claims it had a cordial relationship with the regulator until last July when it asked the Regulator to return some €4 million of its €11 million bond on grounds the amount of that bond was more than the company was obliged to pay given its failure to meet its expected turnover targets.