Scheme Approved To Allow CityJet To Exit Examinership
The High Court has approved a survival scheme to allow Dublin-based airline CityJet to exit examinership. CityJet sought court protection from its creditors earlier this year as a result of financi...
The High Court has approved a survival scheme to allow Dublin-based airline CityJet to exit examinership.
CityJet sought court protection from its creditors earlier this year as a result of financial difficulties being exacerbated by the grounding of its fleet due to the COVID-19 crisis.
As reported by The Irish Times, on Tuesday August 12, Mr. Justice Michael Quinn approved a scheme to allow the airline to exit examinership. The scheme was put together by the airline's examiner, Kieran Wallace of KPMG.
The scheme, which was supported by the majority of CityJet's shareholders, will result in tens of millions of euro of the airline's debit being written off and will allow CityJet to continue as a going concern on "a slimmed-down" basis.
Over 400 jobs at CityJet will be saved by the scheme.
The airline previously employed approximately 1,100 people.
Of the jobs that will be saved, 140 will be Dublin-based, while the rest will primarily be in Copenhagen, where CityJet operates a service for SAS.
"Confident Of Recruiting Again"
The Irish Times quotes a CityJet spokesperson as saying, "The airline is confident of recruiting again once market conditions improve."
© 2020 Hospitality Ireland – your source for the latest industry news. Article by Dave Simpson. Click subscribe to sign up for the Hospitality Ireland print edition.