BY ENDA CUNNINGHAM

The examiner appointed to troubled Galway-based airline Aer Arann has told the High Court he is “broadly optimistic” the company can survive.

The company could return to profitability next year if fresh investment is secured – already, a total of eleven different parties have expressed an interest in either investing in or buying the company.
In a further positive sign, the airline’s legal team has claimed the examinership period could end after just 50 days.

Insolvency expert Michael McAteer of Grant Thornton was appointed full examiner to Comhfhorbairt (Gaillimh), which trades as Aer Arann, at a High Court hearing yesterday (Wednesday).

Mr McAteer had drawn up a report for the court, after being appointed interim examiner two weeks ago, in which he said he was “broadly optimistic” about the company’s prospects for survival.

The court heard there are eleven different parties have submitted expressions of interest in investing in the airline – fresh investment is key to the company’s survival, along with expanding its franchise agreement with Aer Lingus.

The company will also need the full backing of its bankers and creditors to continue trading.

One of the expressions of interest is understood to be a syndicate which includes Aer Arann chairman Pádraig Ó Céidigh, while others are aircraft leasing firms interested in purchasing the company’s twelve-strong fleet.

The airline racked up losses of €6m in the first seven months of this year, of which, around €4.5m has been attributed to the volcanic ash cloud crisis in April.

In fact, since 2008, the company has amassed losses of around €18m.

There is now mounting pressure on Taoiseach Brian Cowen to draw up a loan guarantee scheme similar to ones introduced in Denmark, Finland and France for regional airlines which were hit by the ash clouds.

Last week, the company appealed for the public’s support by asking them to continue booking with Aer Arann, which continues to trade as normal.

For more, read this week's Connacht Tribune.