Galway Airport only has enough cash to stay open for just a matter of days, after Bank of Ireland ‘raided’ their deposit account, seizing €1.1 million.

Galway Chamber of Commerce, the majority shareholder in the airport, said the money was taken from the account last Friday, despite the airport’s accounts, loans and tax affairs being “100% compliant”.

The airport’s deposit account had €1.6m, and last Friday, the bank withdrew €1.1m, despite agreeing a business plan less than a month ago.

Of the remaining €500,000, around €450,000 is required for redundancy payments – last October 47 workers lost their jobs when Aer Arann cancelled its routes out of Galway.

That leaves just €50,000 in the coffers, which sources say will only see the airport stay open for “a couple of days or a week”.
Airport management were last night seeking legal advice on the matter.

A spokesperson for Bank of Ireland told the Connacht Tribune last night that the bank could not comment on any individual company.

President of Galway Chamber, Declan Dooley, told the Connacht Tribune last night: “Our reaction was one of absolute shock and outrage. It’s an unprecedented move by a bank. The airport has been repaying fully capital plus interest on loans to Bank of Ireland and Bank of Scotland (Ireland). The accounts, loans and tax affairs are 100% compliant.

“The airport engaged PricewaterhouseCoopers to find an investor or buyer. On January 4, Bank of Ireland were told of the plan and indicated they were in agreement. Three weeks later, they removed €1.1m.,” said Mr Dooley.

A statement from Galway Chamber reads: “On Thursday last, Galway Airport was trading as a going concern and had agreed a clear business plan for its future with its bankers. It had €1.6 million in its bank account with further funds due.

“On Friday, without any notice to Galway Airport, Bank of Ireland seized €1.1 million from the company’s account and set it off against the company loans which were up to date, fully compliant and not in default in any way.

“This unprecedented move by Bank of Ireland could well have consequences should it be applied to any business in Galway.

“This is an extremely worrying development, not only for Galway Airport, but also for the member companies of Galway Chamber and for business as a whole."

See full story in this week's Connacht Tribune.