Budget airline fails to lift off

A LOW-COST airline has gone into receivership before it began flying, it emerged yesterday.

Now Airlines, which officially launched last year with the aim of challenging bigger no-frills players such as easyJet and Ryanair, said it had experienced problems with completing agreed funding. The company said in a statement on its website that it had deferred the launch of its services “until further notice” and was considering a restructuring plan.

The statement added that Now Airlines had been put into receivership and anyone wanting to contact the airline should get in touch with the Official Receiver in St Albans.

Now is the latest new budget airline to fail in the increasingly cut-throat European low fares market. Last month, Birmingham-based Duo went into receivership owing nearly £20 million.

On Monday, easyJet saw its shares drop after it said profits may only just top last year’s £52 million.

A week before, low-cost leader Ryanair blamed competition, the Iraq war, a weaker pound, higher oil prices and the threat of terrorist attacks for the first fall in net profits since it floated.