EUjet bought by British operator

EUJET, the Shannon-based airline set up by former Ryanair chief executive PJ McGoldrick two years ago, has been snapped up by British airport operator Planestation in a deal that values the company at €6 million.

Planestation said yesterday it had signed a deal to take control of EUjet, which employs 250 people, upping its stake from 30%.

Mr McGoldrick said the deal was the final piece in a jigsaw to develop a new low-cost airline model.

“For an operator to have long-term stability requires long-term arrangements with airports, particularly at their main bases of operation,” he said.

“The best way of achieving this is for the airline and airport operator to come together to offer low-cost air transport to the market.”

Mr McGoldrick will also take a seat on Planestation’s board.

The tie-up will give the airline certainty over access costs at Kent International Airport, which is owned by Planestation and where EUjet conducts most of its flight operations.

Planestation, which is quoted on the London Stock Exchange, acquires underperforming regional airports and turns them into commercially viable hubs. Its portfolio includes airports in Germany, the Czech Republic and the US.

EUjet plans to service 19 routes between Britain, Ireland and Europe, using five aircraft. The routes will include Dublin-Kent and services from Shannon to Kent, Murcia, Geneva, Faro and Malaga.

EUjet’s main shareholders were Mr McGoldrick, his family members and airline management. They will have to wait at least three years for their windfall, as Planestation structured the deal to allow it to defer payment until between 2007 and 2010.

Mr McGoldrick will pay €500,000 and Planestation will stump up €300,000 to the airline’s working capital requirement.

The deal will not affect Shannon-based aircraft finance company Debis, which has the right to buy an 8% stake in EUjet.