The High Court has appointed an interim examiner to regional airline Aer Arann. The move gives the company court protection to enable the examiner to implement a restructuring plan.
Michael McAteer of Grant Thornton is to be interim examiner to Comhfhorbairt (Gaillimh), which trades as Aer Arann.
A statement from the airline said Mr.McAteer's appointment would not affect day-to-day business and the company would continue to operate as normal. Aer Arann said there would be no impact on customer travel or bookings.
Aer Lingus will also continue to work with Aer Arann through the franchise agreement between the airlines. Aer Arann employs 320 people.
A full hearing will take place on September 8, when the court will decide on how the interim examinership will proceed. Examinership is a provision in Irish company law designed to help companies that have financial difficulties, but also have a reasonable prospect of survival.
Aer Arann said the decision of its board to apply for examinership followed two years of loss-making trading. It said the airline had been on budget for this year, but was badly affected by the disruption caused by volcanic ash from Iceland.
The airline lost around €6m in each of 2008 and 2009. Losses of €6m have been incurred so far this year. ‘These combined losses have led to a deficit in shareholder funding of approximately €13m at the end of July this year,’ the airline said.
The examinership does not involve Aer Arann Islands, which is a separate company.
