250 jobs face axe as EUjet ceases flying

UP to 250 jobs are set to go at Shannon and Kent in England after budget airline EUjet stopped flying yesterday.

The news came after the collapse of Planestation, the British airport operator that took over the airline last year.

Staff at the airline, which was set up by former Ryanair chief executive PJ McGoldrick, were told an administrator would be appointed who would tryto sell the company and its assets.

They had been called to a meeting last night after Planestation told the stock exchange of its collapse and warned shareholders they could lose all the money they had invested in the group.

Trading in Planestation shares was dramatically suspended on Monday after the company said its bankers, Bank of Scotland, had turned down a request for extra funding to help it cope with cashflow problems.

The situation deteriorated yesterday when EUjet suspended all flights into and out of Britain, including those to Dublin and Belfast, while one of its planes was seized at Edinburgh Airport in a dispute over unpaid fees. No flights were scheduled from Shannon yesterday.

Mr McGoldrick said last night that customers would be able to recover money paid over for flights from their credit card companies.

“All passengers will be contacted by the commercial team about the cancellation of their flights,” he said.

The Commission for Aviation Regulation, which had been monitoring developments at the airline since Monday, said EUjet passengers should contact the airline directly for information on securing replacement flights, but warned that the airline was not bonded and there was no guarantee arrangements would be made to facilitate them.

EUjet had struggled to attract passengers on its 19 routes between Ireland, Britain and Europe.

Planestation said last month that it faced a cash squeeze because passenger levels had failed to meet targets and that it would sell a series of assets, including a 75% stake in a business park at Kent airport, to raise money to fund its ongoing operations. Mr McGoldrick said yesterday that the airline’s problems had been compounded by an aircraft that was out of service for most of the summer.

“Due to circumstances beyond our control, EUjet with deep regret wish to inform you that with immediate effect the airline has ceased all operation and flights,” said a statement on the firm’s website last night.

An administrator is expected to be appointed later this week. Accounting firm Grant Thornton was named administrator of Planestation yesterday.