THE 12,000 passengers booked on CityJet flights over Christmas and New Year will not be disrupted in any way, and the 165 employees will keep their jobs, according to the chief executive of the struggling airline Mr Pat Byrne.
CityJet moved quickly to minimise the damage to its reputation last night with Mr Byrne saying examinership was designed merely to give the firm breathing space to implement a financial restructuring.
None of CityJet's creditors had threatened to pull the plug, he said.
The company had net debts (the amount by which its liabilities exceed its assets) of £8 million and was insolvent, he admitted, but a plan had already been drawn up which would see the major trade creditors wipe out 50 per cent of what they were owed and a Swedish airline take a 40 per cent stake in CityJet.
Mr Byrne said that not only could he guarantee all of CityJet's flights over Christmas, but that Malmo Aviation, the Swedish firm that wished to invest in CityJet, had given a free loan of an aircraft to allow CityJet carry even more passengers.
Current and new investors stood ready to put up £2.4 million and Malmo would buy a two fifths stake in CityJet for £1.6 million. The banks would then be asked to lend a further £1 million as a secured creditor.
"This is Chapter 11, with a far, far shorter time frame," Mr Byrne said last night, referring to US legislation often used to keep struggling companies operating while they were refinanced. "We haven't gone for the protection of the court to stick up a `For Sale' sign."
He denied that Mr Dermot Desmond who, as the owner of London City Airport, is a major creditor, was behind the plan.
:quality(70)/cloudfront-eu-central-1.images.arcpublishing.com/irishtimes/VR3765MFOBH2NMV2QNICYDF67M.png)