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Grounded MK Airlines returns operating licences - International Freighting Weekly - ifw-net.com
Grounded MK Airlines returns operating licences
Will Waters | Mon, 12 Apr 2010
Freighter operator tells customers its financial problems mean it can no longer maintain necessary service and safety levels
MK Airlines has suspended operations because of financial problems and returned its operating licence and air operator’s certificate to the UK Civil Aviation Authority (CAA).
A spokesman for the CAA told
IFW that MK had voluntarily returned the licences at 8am this morning, but was unable to comment on the reasons for the airline’s actions.
Forwarding sources said the freighter operator suspended operations on Friday, having told customers it had become impossible, with its current financial resources, to maintain the service and safety levels expected.
IFW reported last month that the airline, which operated B747 freighters between Europe, Africa, Asia and the Middle East, was in financial difficulty and that some MK staff had been told not to expect wages to be paid for seven or eight weeks due to cash-flow problems.
MK had confirmed at the time that there had been a delay to some payments to staff, but had been optimistic that the recent revival in air freight demand and rates would ease its financial challenges.
MK’s biggest customer, forwarder Panalpina, confirmed on Friday that it had been notified of the suspension of flights, but said this would have no impact on the continuation of its Africa operations.
Matthias Frey, manager of Panalpina’s own-controlled air network, said: “Panalpina and MK Airlines have been close partners for many years, co-operating mainly on the trade route between Europe and Africa.
“Panalpina has secured sufficient capacity to guarantee its customers uplifts and highest service quality as usual.
“The company has worked out alternatives for the short, medium, and long-term, ensuring a smooth service for all customers.”
Airline sources said a team from the UK CAA visited MK Airlines two weeks ago to check whether MK had adequate resources to continue to guarantee safe flight operations.
The CAA team was expected to return to MK’s UK headquarters on Friday, in order to verify that certain changes had been forthcoming, including the payment of flight crew and other staff wages and outstanding debts to fuel and handling providers and air traffic control authorities.
Several airline sources said they expected the CAA to rescind MK’s air operator’s certificate on Friday, although the CAA told
IFW MK had retained possession of its AOC and operating licence until this morning.
MK briefly ceased operating in mid-2008, when problems raising new funding forced the airline into administration, although it resumed flight operations in June 2008 after the company’s joint administrators secured an initial funding arrangement with Transatlantic Aviation, part of the Belfairs Management group.
After emerging from administration, it had been operating with a reduced fleet of just two or three freighters – compared with up to eight B747s three years ago.
Sources said promised additional funding from its new owners had not been forthcoming.
No one from MK Airlines was available to comment.