€15m required for revival of Jetmagic

A REVIVAL of collapsed Cork based regional airline Jetmagic will require fresh investment of up to €15 million.

Cork Chamber of Commerce chief executive Michael Geary believes new investors will have to be found within two to three months if the airline is to get back into the air.

“We are ready, willing and able to help in whatever way we can, but at this stage it must be seen as a long shot,” he said.

Mr Geary said no approaches to revitalise the airline have been made through the Chamber.

Jetmagic which ceased operations at the end of January has yet to appoint a receiver or seek the protection of the High Court by asking to be put into examinership.

Jetmagic chief executive Barry Perrott believes the airline can resume some of its services if investors come forward.

Shareholders in the company which include former Aer Lingus chief, Michael Foley, and the members of Punch family invested close to €11 million in the company before it hit the financial turbulence which grounded it.

A small team of Jetmagic administrative staff are currently compiling a creditors list and the total amount outstanding to, mostly Cork-based service and supply companies, will be in the region of €3.5 million.

Jetmagic’s 103 employees did not receive any redundancy payments because the company was not in business long enough for them to build up statutory entitlements.