Thought this may be of interest .......
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--------------------------------------------- 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