90 jobs at risk as charter airline ceases operations

IRISH charter airline Futura Gael ceased operating at midnight yesterday, placing 90 jobs in jeopardy as economic uncertainty in the airline sector claimed another victim.

Futura Gael is owned by Futura International and was forced to pull the plug on its charter services late on Sunday, with the company claiming it was “too early” to know if its service will ever get off the ground again.

Its last flight left Dublin Airport for Malaga three hours later than scheduled at 10pm on Sunday. Yesterday, Futura Gael was unable to say how staff or passengers might be affected by the suspension of its service, but stressed that passengers would be catered for by tour operators.

A number of holiday companies, such as Direct Holidays, Panorama and Sunworld, have said they are now sourcing alternative flights for customers who were due to travel on board Futura Gael flights.

Customers with Falcon Holidays were yesterday due to leave for the Costa de Almeira in Spain on three flights from Dublin, Shannon and Cork. Instead, passengers due on the Cork flight were bussed to Shannon and the Dublin flight — which left at 1.45pm instead of 6.05am as scheduled — then flew to Shannon where it picked up all passengers due to fly to the Spanish resort.

Meanwhile, Budget Travel said its first flight with Futura International was on Thursday, from Cork to Palma, and was trying to find alternative planes.

Following a meeting at its headquarters in Majorca, Futura International said some of its continental flights would return to normal today, but this will not affect the grounding of the Irish operation.

Futura Gael financial director Barry Matthews admitted that the situation was “bleak” and said the Irish wing of the company was suffering as a result of rising fuel costs and the effects of the credit crunch.

Speaking from the company’s office in Swords, Mr Matthews said: “It is too early to say anything [about staff jobs]. It is a bleak situation.”

He said management would seek a deal with creditors, including leasing companies and fuel companies, in a bid to secure the future of the airline. However, he said the speed with which the company was forced into suspending its flights meant staff faced a period of uncertainty.

He added that fuel costs accounted for the majority of spending and this had been a significant factor in having to suspend Futura Gael’s operations.

Futura Gael was established here in 2006 by the Majorca-based Futura International group but only began running commercial flights in March of last year when it was granted its air operator certificate by the Irish Aviation Authority.

The first signs of financial difficulties emerged two weeks ago when management at the company suggested that all employee salaries be cut to 1,000 a month.

“There was a number of ideas considered by management. That was one of them but nothing had been decided,” said Mr Matthews.

Once the threat of insolvency was in the air the company had to adhere to local and international laws safeguarding passenger safety, resulting in its decision to ground its flights as of midnight on Sunday.