Published on August 17th, 2020 | by Alan Dwyer0
CityJet to Exit Examinership
Last week, at a hearing in the High Court, Mr Justice Michael Quinn said he was to approve a scheme of arrangement put together by the airline’s examiner Mr Kieran Wallace of KPMG, which will allow the airline formally exit examinership. The airline will continue to operate on a slimed-down basis and retain around 400 employees, down from more than 1,000 before the COVD-19 pandemic arrived. Around 140 of the jobs will be at the airlines Dublin base with the remained in Scandinavia where Cityjet operate a number of routes for SAS.
A spokesperson for the airline said “they were confident of recruiting again once market conditions improve”. The airline is reported to have debts in the region of €500m at the time it entered examinership last April. Agreement has been reached with many of the airlines creditors to have huge chunks of the debt written off. In the court hearing, Mr Justice Michael Quinn accepted that creditors would do better under the examiner’s proposals than if the airline was liquidated, which the court was told was the only alternative to the scheme. Under the scheme, most creditors will get dividends ranging between 15 per cent and 1.25 per cent. Creditors listed were several aircraft leasing companies, the Revenue Commissioners, Investec and other companies.
Cityjet have previously operated under lease arrangements for Aer Lingus to London City but this route is no longer operated. They have also had lease arrangements with Brussels Airlines but these ended earlier this year and they had extensive operations for SAS but this has been reduced following the COVID-19 pandemic.