High Court told Revenue will not oppose CityJet survival scheme

Scheme has the support of a majority of the airline’s creditors

CityJet aircraft parked at Dublin Airport in 2018.  Photograph: Nick Bradshaw

CityJet aircraft parked at Dublin Airport in 2018. Photograph: Nick Bradshaw

 

The Revenue Commissioners will not oppose an application to the High Court for approval of a survival scheme for regional airline CityJet, the court has heard.

During a brief hearing on Tuesday, Mr Justice Michael Quinn heard the Revenue had obtained clarification from the airline’s court-appointed examiner on what it regards as important issues.

The examiner, Kieran Wallace of KPMG, is recommending that the scheme, which has the support of a majority of the airline’s creditors, be approved at a hearing later this week.

The judge welcomed the clarification regarding Revenue’s position.

Last April the airline sought protection of the court claiming it was insolvent due to financial difficulties which were exacerbated after its fleet of more than 30 aircraft was grounded due to the Covid-19 outbreak.

The impact of the pandemic interrupted a planned merger with another airline and a proposed private restructure of the company, it claimed.

It has debts of €500 million and, at the time of entering the examinership process, had a net deficit of liabilities over assets on a going concern basis of €186 million.

The airline and its subsidiaries employed 1,175 people, of whom 417 were based in Dublin.

CityJet no longer flies scheduled routes under its own brand, and has moved to “wet leasing” where it provides serviced aircraft and crews to operate routes for other carriers.