>A bad, sad day for all at Transaer, whether in Gatwick, Dublin, Manchester, Stansted, Cuba, Cairo, Belfast, Libya, Paris or wherever. A good friendly company, with very few t0ssers. Good luck everyone.
FULL COPY OF LETTER FROM PJ MCGOLDRICK/WILLIE O'BYRNE
> Important Notice
>
>
> To all staff,
>
> I regret to have to advise you that all commercial aircraft operations
> ceased on the instructions of the board following their meeting today.
> Ferry flights are underway to redeliver all aircraft according to lessors
> instructions on a best endeavours basis. A review of the company's
> financial outlook clearly demonstrated to the directors that the cash
> position was critical and that contacts with various interested investors
> did not offer a reasonable prospect, in our honest opinion, of delivering
> funds into the company within a timeframe acceptable to the company's
> creditors.
>
> The source of TransAer's problems were:
>
> * The overhang from last year of losses arising from the war in Kosovo
> and its impact on the Greek, German and Turkish markets
> * The application to the US court in late September by TransMeridian
> Inc. for protection under Chapter 11 of the Bankruptcy code there. You are
> aware that TransAer has invested $20m over the life of this airline.
>
> The breakdown of merger discussions with HeavyLift Cargo Airlines which
> could have delivered funding and synergies, and in particular their
> withdrawal of a short term facility designed to bridge the airline until
> all aspects of the deal concluded, escalated a difficult situation to the
> present impossible circumstances.
>
> The tragedy of the situation for staff, shareholders and the company's
> wider stakeholders is that the company has returned to profit this year
> and is within days of finishing a successful summer season; operationally,
> commercially, and technically. Indeed TransAer has posted an operating
> profit for six years out of seven, but unfortunately did not have the
> financial reserves to withstand the shocks of Kosovo and TransMeridian's
> difficulties.
>
> Later today if it can be achieved, an application will be filed in the
> High Court in Dublin seeking the appointment of a provisional liquidator
> to conduct an orderly winding up of the company's affairs. At that stage
> the executive authority vested in the directors passes over as does the
> 'accountable manager' responsibility. We are handing over to his care an
> organisation, which is professional and capable and paid up to the month
> end. From hereon it must be his decision as to who he needs to retain, and
> for how long. He will also act as a guarantor of all our statutory rights
> including payment for work done after 31st October.
>
> In these circumstances, everyone will be concerned for their colleagues
> posted to away from base locations. We can advise you that rather than
> take chances with the attitude of the liquidator to this highest priority
> task, we have this afternoon put Donnybrook Travel into funds which will
> adequately cover all expenses incurred in bringing staff home.
>
> Finally, given the devastating implications today's development has for
> all our jobs, PJ has made arrangements with Barry Murphy in AIR to set up
> a placement assistance service. Without exception, TransAer's team of
> staff have displayed professional care and attention to their tasks and
> given the healthy state particularly of the Irish economy, we are
> convinced that new employment can be quickly found. More details on
> accessing this service will be made available on Monday.
>
> With the passage of time, our reflections on the TransAer experience will
> be balanced in terms of good times and bad. It is impossible for us today
> after the frantic efforts and long hours of the last week to be objective
> in that way. However it would be wrong to close this last formal
> communication with you as Executives without thanking you for all your
> support and hard work in a common cause. We are devastated that we have
> not been able on this occasion to find a way through.
>
>
>
> PJ McGoldrick, Willie O'Byrne
> Chairman. Chief Executive.
>
>
> 20th October 2000
>