ZURICH-BASED SR Technics has agreed to sell the bulk of its aircraft maintenance operation in north county Dublin to a group led by Irish aviation executive Conor McCarthy.
It is understood that up to 250 jobs could be created at the new aircraft maintenance business beside Dublin airport. No sale figure has been revealed but it is understood that Mr McCarthy’s plan is based around a $30 million (€21.2 million) investment over five years. This includes the cost of buying SRT’s equipment although there will be no transfer of customer contracts. In February, SRT announced that it was closing its Irish subsidiary with the loss of 1,135 jobs.
Dublin Aerospace Ltd, which was founded recently by Mr McCarthy, has agreed in principle to take over four elements of SRT’s Irish business: its base maintenance, landing gear, auxiliary power units (APU) and training.
The sale deal reverses a decision on May 13th by SRT to sell the APU and landing gear units to Abu Dhabi Aircraft Technologies, a sister company based in the United Arab Emirates. That deal would have involved these operations relocating to the Middle East and is believed to have angered Minister for Enterprise Mary Coughlan.
It is understood that Ms Coughlan met the UAE’s foreign minister Sheikh Abdullah Bin Zayed Al Nahyan in Dublin last month and communicated the Government’s “grave concern” with how the original bidding process was handled by SRT.
The Zurich-based company subsequently invited Mr McCarthy to revise his offer, a move that has led to him securing the bulk of SRT’s assets here.
It is understood that Mr McCarthy is in advanced talks with the Dublin Airport Authority (DAA) to secure a lease on SRT’s hangar facilities at the airport. Mr McCarthy hopes to begin operations in July or August.
SRT sold the leases on its hangar facilities to DAA earlier this year, with the airport manager believed to have paid just over €20 million.
Enterprise Ireland is expected to back Dublin Aerospace’s new aircraft maintenance business with financial, marketing and training supports.
Hailing from Drumcondra, Mr McCarthy began his working life as a 16-year-old apprentice electrician with SRT. He later held executive positions with Aer Lingus and Ryanair and was a founder in 2001 of low-cost carrier Air Asia.
He will hold the position of executive chairman with a chief executive to be appointed shortly.
A spokesman for the Department of Enterprise, Trade and Employment expressed satisfaction at the sale agreement.
“We are satisfied to see that an Irish bidder has been successful and the full support of the various State agencies will be made available . . . in building a new business,” the spokesman said.
SRT still has to decide the fate of its line maintenance and garage operations here. It holds a line maintenance contract with Aer Lingus, with bids for this business to be submitted by June 10th. It has received three offers for its garage operation.
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