Future of new airline EUjet looks under threat

TRADING in Planestation shares was dramatically suspended yesterday after the owner of Shannon-based airline EUjet said its bank had pulled the plug on extra funding for the group.

The company said its day-to-day operations would continue as normal and that EUjet flights operated on schedule yesterday. But it asked the Stock Exchange to authorise a suspension after shares plunged 8% and threatened to fall further.

Planestation, an airport operator that took over EUjet last year in a deal worth around 6 million, recently announced plans to ease cashflow problems by selling a 75% interest in a business park near Kent International Airport. But it emerged yesterday that its bank had decided against providing extra finance to support the company until the sale was completed.