From today's Irish Independent 03 April 2001
Gate closes on Virgin Express Ireland
VIRGIN Express Ireland officially ceased to be at midnight last night as the deadline to find a buyer for the Shannon Airport-based carrier expired.
The company, which had employed some 220 staff at its Shannon, Gatwick and Brussels bases, had been operating since December 1998 but management yesterday blamed its closure on the hike in aviation fuel prices and the strong US dollar.
Chief executive Martin Hamrogue, however, remained upbeat about the possibility of a deal being pushed through for the launch of another airline in Virgin Express Ireland's place.
Mr Hamrogue said that a UK investment company is interested in taking over from Virgin Express in Shannon and he hoped that this would take place "sooner rather than later."
He would not divulge the identity of the investment company, but said that he expects the deal to go ahead and he will remain on in Shannon himself with a view to seeing it through.
He also confirmed that there was at least one potential buyer for Virgin Express Ireland but that buyer did not have the funds to purchase the company by yesterday's deadline and, as a result, the company officially ceased trading last night.
"Virgin Express Ireland is not being sold because it simply does not exist any more but the relaunch of a new airline in its place is a distinct possibility," said Mr Hamrogue.
Principal management staff, he said, will remain on in Shannon in order to achieve the relaunch but he could not say how many will be employed and what flights will be operated by the new company, if it is launched.
The company is owned by Virgin Express Holdings, in which Richard Branson has a majority stake, and among the non-executive directors on the VEI board was broadcaster Gay Byrne.
Annual accounts for Virgin Express Holdings showed an operating loss of £46m last year alone, compared with a £4.9m operating loss in 1999.
Despite this, Virgin Express Ireland has "no debts of any kind," according to Mr Hamrogue
...but then you knew this already!....