Aer Arann trade steady as investors lined up

PASSENGER bookings with Aer Arann held steady in its first day of trading under High Court protection, the airline said yesterday.

The airline, which has sustained losses of €18 million since the start of 2008, would not comment on reports that there are at least three investors interested in taking a stake in the company.

However, sources have indicated that this is an accurate figure.

While the identities of the three are, for the moment, only known by the company and its examiner, there is speculation that Aer Lingus has been approached as a potential investor in the airline.

“The piece of business in Aer Arann that is probably of most interest to potential investors is the new Aer Lingus relationship, where it is providing a regional feeder service into Aer Lingus,” said Joe Gill, airline analyst with Bloxham Stockbrokers.

“I would expect the examiner will try to attract investors to the company based on that. But that is effectively about half of what is in Aer Arann at the moment.”

He said Aer Lingus would be considered as a possible suitor for Aer Arann and he would be surprised if the larger airline had not already been approached.

Michael McAteer of Grant Thornton has been given the task, as interim examiner, of reviewing the financial position of the company, overseeing its restructuring and evaluating the potential investors.

That process is likely to take up to three months, providing the High Court approves the appointment of a full examiner when it sits on September 8.

Fine Gael has said there should be no “panic response” from regional airports to the fact that Aer Arann has gone into examinership.

“While undoubtedly the company faces significant challenges, with the right business plan and new financial backing Aer Arann is confident that it can secure a viable operating future and continue to provide valuable employment to its staff,” said party transport spokesman, Simon Coveney.

“Aer Arann has played an important role, particularly in supporting regional development, and can continue to do so in the future.”

Meanwhile, the National Asset Management Agency is understood to be disputing the role it played in the build-up to another well- known company going into examinership late on Thursday.

McInerney Homes had claimed that it had been forced to seek examinership after its banks, Anglo Irish, Bank of Ireland and KBC, cancelled the company’s overdraft and required a 100% “cash sweep” from unit sales. It said that decision had been taken under the direction of NAMA.

However, a source close to NAMA said that was not the case.

The source said NAMA had merely requested the bank syndicate agree a common proposal for NAMA on how they would deal with the financial situation at McInerney Homes.

Individual proposals were put forward by the banks but there was no common and agreed proposal made to NAMA.