Eujet cease operations/Manston(Merged)
Join Date: Oct 2004
Location: Montréal, Québec
Posts: 123
Likes: 0
Received 0 Likes
on
0 Posts
Note the bit I've put in bold...
That fat lady has not yet sung, but she sounds like she's almost done gargling. 
*j*
PS... I must confess to feeling bad about being unfairly harsh to EU-Jet in the early days, but if that happens, we\'re into a whole new ball game. I\'m sure a money issue could be resolved, but when the licence becomes involved....
Good luck to everyone at this morning\'s meeting,
James
July 26, 2005 02:10 AM ET
EUjet owner on brink of collapse
(from ft.com)
PlaneStation, the UK aviation and property group, was forced to suspend trading in its shares in London on Monday, after it revealed that it was in severe financial difficulties.
It said that its bank, the Bank of Sotland corporate division of HBOS, was "no longer able to support the company with additional facilities."
PlaneStation management was in emergency meetings on Monday in an effort to avoid a collapse into insolvency.
The group owns Kent Internatonal airport based at Manston as well as EUjet, the Irish registered low cost airline, which operates from two bases at Manston and Shannon in the west of Ireland.
EUjet was still operating its flights to 21 destinations on Monday, but a spokesman for the Irish Commission for Aviation Regulation said that the operating licence would "come under close review during the next 24 hours," as it was unhappy with some of its "financial elements."
PlaneStation said that discussions with its bank in the last 48 hours had "not been positive."
The group, which had set its main hopes for financial recovery on the development of a new low cost carrier at Manston, said on Monday that passenger numbers had fallen below planned levels. The airline has also been hit by a big jump in its fuel costs due to the sharp rise in the oil price.
It said that the cash requirements of EUjet would be "greater than originally planned."
It is understood that its debt with Bank of Scotland totals between £20m and £25m.
The loss-making group managed to raise £28m in a deeply discounted rescue rights issue at the beginning of this year, but the airline has consumed far more cash than was estimated seven months ago.
The main institutional shareholders all with stakes of more than 10 per cent include M&G Investment Management, Goldman Sachs and New Star Asset Management. Other investors include Artemis Investment Mangement, Morley Fund Management, Gartmore Investment Management and Cazenove Fund Management.
PlaneStation had already been forced itself to take over EUjet, its main hope for generating cash at the airport, after the airline's founders had been unable to raise the necessary capital.
It had been hoping to fund the cash shortfall through asset sales but had been unable to complete any deals.
EUjet is a start-up Irish airline founded by PJ McGoldrick, a former chief executive of Ryanair, and it finally started flying scheduled low cost operations out of Manston in September last year despite warnings by both Ryanair and EasyJet, the leading no frills carriers, of a looming "bloodbath" in the sector.
The airline had previously been majority-owned by the McGoldrick family with PJ as chief executive and his son Stuart as deputy CEO. It started operations in May 2003 offering aircraft leasing and charter services from Shannon.
PJ McGoldrick was chief executive of Ryanair for three-and-a-half years to 1991, when the airline was still struggling with heavy losses and had not yet espoused the low cost airline model, which has since made it one of the largest short-haul airlines in Europe.
Manston, an under-utilised south-east of England airport on the coast of east Kent, is one of the main assets of the long-troubled Planestation group, which was formerly known as Wiggins, and had previously been chiefly used by air cargo operators.
EUjet operates a fleet of five Fokker 100 jets, leased from Debis Air Finance, and has a workforce of around 500. It flies to 21 destinations, with flights chiefly from Manston to holiday destinations in Spain, but also to Austria, France, Switzerland and Ireland. It also has three domestic UK routes.
It carried 36,000 passengers in May but managed to fill only 55 per cent of its available seats.
Last December PlaneStation estimated that the main working capital requirements for EUjet during the following 12 months would be £16.4m for aircraft lease, crew and maintenance costs, £10.6m for fuel costs, £12.4m for route, airport and handling costs and £3.3m for marketing and distribution.
Before last December's rights issue PlaneStation said that it was "in severe financial difficulties." Bank of Scotland warned then that without the equity issue, which was underwritten by Evolution Securities, it would withdraw support and would seek to recover existing loans.
Without the rescue rights issue PlaneStation would have had to apply for administration or to start an insolvent liquidation of the group at the end of last year.
At the end of June it claimed that since the subsequent restructuring of the group, EUjet had made "considerable progress" and had "proven the demand for low cost air travel" from Kent International airport, previously "an unknown market."
Copyright 2005 Financial Times
EUjet owner on brink of collapse
(from ft.com)
PlaneStation, the UK aviation and property group, was forced to suspend trading in its shares in London on Monday, after it revealed that it was in severe financial difficulties.
It said that its bank, the Bank of Sotland corporate division of HBOS, was "no longer able to support the company with additional facilities."
PlaneStation management was in emergency meetings on Monday in an effort to avoid a collapse into insolvency.
The group owns Kent Internatonal airport based at Manston as well as EUjet, the Irish registered low cost airline, which operates from two bases at Manston and Shannon in the west of Ireland.
EUjet was still operating its flights to 21 destinations on Monday, but a spokesman for the Irish Commission for Aviation Regulation said that the operating licence would "come under close review during the next 24 hours," as it was unhappy with some of its "financial elements."
PlaneStation said that discussions with its bank in the last 48 hours had "not been positive."
The group, which had set its main hopes for financial recovery on the development of a new low cost carrier at Manston, said on Monday that passenger numbers had fallen below planned levels. The airline has also been hit by a big jump in its fuel costs due to the sharp rise in the oil price.
It said that the cash requirements of EUjet would be "greater than originally planned."
It is understood that its debt with Bank of Scotland totals between £20m and £25m.
The loss-making group managed to raise £28m in a deeply discounted rescue rights issue at the beginning of this year, but the airline has consumed far more cash than was estimated seven months ago.
The main institutional shareholders all with stakes of more than 10 per cent include M&G Investment Management, Goldman Sachs and New Star Asset Management. Other investors include Artemis Investment Mangement, Morley Fund Management, Gartmore Investment Management and Cazenove Fund Management.
PlaneStation had already been forced itself to take over EUjet, its main hope for generating cash at the airport, after the airline's founders had been unable to raise the necessary capital.
It had been hoping to fund the cash shortfall through asset sales but had been unable to complete any deals.
EUjet is a start-up Irish airline founded by PJ McGoldrick, a former chief executive of Ryanair, and it finally started flying scheduled low cost operations out of Manston in September last year despite warnings by both Ryanair and EasyJet, the leading no frills carriers, of a looming "bloodbath" in the sector.
The airline had previously been majority-owned by the McGoldrick family with PJ as chief executive and his son Stuart as deputy CEO. It started operations in May 2003 offering aircraft leasing and charter services from Shannon.
PJ McGoldrick was chief executive of Ryanair for three-and-a-half years to 1991, when the airline was still struggling with heavy losses and had not yet espoused the low cost airline model, which has since made it one of the largest short-haul airlines in Europe.
Manston, an under-utilised south-east of England airport on the coast of east Kent, is one of the main assets of the long-troubled Planestation group, which was formerly known as Wiggins, and had previously been chiefly used by air cargo operators.
EUjet operates a fleet of five Fokker 100 jets, leased from Debis Air Finance, and has a workforce of around 500. It flies to 21 destinations, with flights chiefly from Manston to holiday destinations in Spain, but also to Austria, France, Switzerland and Ireland. It also has three domestic UK routes.
It carried 36,000 passengers in May but managed to fill only 55 per cent of its available seats.
Last December PlaneStation estimated that the main working capital requirements for EUjet during the following 12 months would be £16.4m for aircraft lease, crew and maintenance costs, £10.6m for fuel costs, £12.4m for route, airport and handling costs and £3.3m for marketing and distribution.
Before last December's rights issue PlaneStation said that it was "in severe financial difficulties." Bank of Scotland warned then that without the equity issue, which was underwritten by Evolution Securities, it would withdraw support and would seek to recover existing loans.
Without the rescue rights issue PlaneStation would have had to apply for administration or to start an insolvent liquidation of the group at the end of last year.
At the end of June it claimed that since the subsequent restructuring of the group, EUjet had made "considerable progress" and had "proven the demand for low cost air travel" from Kent International airport, previously "an unknown market."
Copyright 2005 Financial Times
*j*
PS... I must confess to feeling bad about being unfairly harsh to EU-Jet in the early days, but if that happens, we\'re into a whole new ball game. I\'m sure a money issue could be resolved, but when the licence becomes involved....
Good luck to everyone at this morning\'s meeting,
James
Join Date: Apr 2004
Location: Wouldn't you like to know!
Posts: 252
Likes: 0
Received 0 Likes
on
0 Posts
Suppose the only real success of EUJet was that it lasted this long!
What happened to the investment from last year which was supposed to see them continue operations for at least another year? That must highlight how much this airlines was not financialy viable to lose that much money that quickly.
What happened to the investment from last year which was supposed to see them continue operations for at least another year? That must highlight how much this airlines was not financialy viable to lose that much money that quickly.
Join Date: Feb 2005
Location: UK
Posts: 4
Likes: 0
Received 0 Likes
on
0 Posts
Well they are now !!
Just heard all EU Jet flights have been grounded.. very sad news.. unless your name is Mc Goldtrick 
Looks like EU Jet dragged MSE down way too much IRISH baggage (bitch)
Want to wish all who work there the very best and a big thanks for trying to make the best effort possible.
Looks like EU Jet dragged MSE down way too much IRISH baggage (bitch)Want to wish all who work there the very best and a big thanks for trying to make the best effort possible.
Join Date: Apr 2002
Location: east sussex
Age: 56
Posts: 23
Likes: 0
Received 0 Likes
on
0 Posts
THE CURSE OF P.J STRIKES AGAIN!!! I AM EX-TRANSAER AND I KNOW HOW IT FEELS I JUST WANT TO WISH ALL THE STAFF AT EU-JET MY BEST WISHES AND HOPE YOU ALL GET JOBS VERY SOON.
Join Date: May 2002
Location: Where Ever.......
Posts: 98
Likes: 0
Received 0 Likes
on
0 Posts
Quote from EUjet Website:
EUjet Alert
Alert
Please be advised that today’s flights to Dublin, Edinburgh, Newcastle & Belfast have been cancelled.
EUjet apologise for the inconvenience caused and will contact passengers directly. Normal operations will resume shortly.
EUjet Alert
Alert
Please be advised that today’s flights to Dublin, Edinburgh, Newcastle & Belfast have been cancelled.
EUjet apologise for the inconvenience caused and will contact passengers directly. Normal operations will resume shortly.
Join Date: Aug 2003
Location: Belfast
Posts: 150
Likes: 0
Received 0 Likes
on
0 Posts
going .... going .....
from Rte.ie (Irish National Broadcaster)
Finance problems halt EUjet flights
July 26, 2005 12:43
Flights operated by regional airline EUjet are reported to have been suspended, as its parent company faces financial difficulties. EUjet operates eight routes from Shannon and two from Dublin.
Shares in Planestation, which owns EUjet, were yesterday suspended in London after talks with its bank on further financial support broke down. The company said it had requested the suspension, pending clarification of its financial position.
Last month Planestation said passenger numbers at EUjet would fall below expectations and it would need more cash. Planestation, which owns Kent International Airport, had planned to fund the shortfall through asset sales. It had been in talks with its bank on additional financial support while the disposal of a 75% stake in Kent International Business Park was completed, but said today that talks in the last 48 hours had not been positive.
from Rte.ie (Irish National Broadcaster)
Finance problems halt EUjet flights
July 26, 2005 12:43
Flights operated by regional airline EUjet are reported to have been suspended, as its parent company faces financial difficulties. EUjet operates eight routes from Shannon and two from Dublin.
Shares in Planestation, which owns EUjet, were yesterday suspended in London after talks with its bank on further financial support broke down. The company said it had requested the suspension, pending clarification of its financial position.
Last month Planestation said passenger numbers at EUjet would fall below expectations and it would need more cash. Planestation, which owns Kent International Airport, had planned to fund the shortfall through asset sales. It had been in talks with its bank on additional financial support while the disposal of a 75% stake in Kent International Business Park was completed, but said today that talks in the last 48 hours had not been positive.
Join Date: Feb 2005
Location: UK
Posts: 33
Likes: 0
Received 0 Likes
on
0 Posts
Join Date: Feb 2005
Location: 35,000ft
Posts: 986
Likes: 0
Received 0 Likes
on
0 Posts
What a shame......
But what is odd is that they are still taking bookings so is it all doom and gloom or just trying to get some more cash from unsuspecting customers??? Seems to be unfair if that is the case.
Have just gone through to the booking stage/seat assignment for a few routes over the next few days and they are pretty much 90% full if not more on their flights, a lot of unhappy customers if they have truely folded.
It is a shame though, everyone has given EU a real good bashing on here from day one. Maybe their goals were set too high, I have used them and Manston which is much further than my usual London departure points and can honestly say the experience beat them all. It was worth the 70 mile journey for a relaxing and no stress airport/airline experience. Baggage reclaim to car in about three minutes and thats no joke!!!
Wonder if Ryanair are gonna jump in their grave???
But what is odd is that they are still taking bookings so is it all doom and gloom or just trying to get some more cash from unsuspecting customers??? Seems to be unfair if that is the case.
Have just gone through to the booking stage/seat assignment for a few routes over the next few days and they are pretty much 90% full if not more on their flights, a lot of unhappy customers if they have truely folded.
It is a shame though, everyone has given EU a real good bashing on here from day one. Maybe their goals were set too high, I have used them and Manston which is much further than my usual London departure points and can honestly say the experience beat them all. It was worth the 70 mile journey for a relaxing and no stress airport/airline experience. Baggage reclaim to car in about three minutes and thats no joke!!!
Wonder if Ryanair are gonna jump in their grave???
Join Date: Sep 2004
Location: ireland
Posts: 152
Likes: 0
Received 0 Likes
on
0 Posts
It just goes to show how poor the financial regulations are around airlines. So many people are likely to lose money on seats they have bought - particularly the SNN seats which were invariably booked way in advance.
The authorities in Ireland should have been far more vigilant about letting EUJET continue under their perilous finacial state and keep taking bookings. Shame on you IAA. The dogs, cats and rats on the street knew that EUJet was a basket case for months.
The authorities in Ireland should have been far more vigilant about letting EUJET continue under their perilous finacial state and keep taking bookings. Shame on you IAA. The dogs, cats and rats on the street knew that EUJet was a basket case for months.
Join Date: Oct 2003
Location: Ask the tower !
Posts: 1,030
Likes: 0
Received 0 Likes
on
0 Posts
It was only a matter of time. Flawed business plan right from the start. MSE was never going to attract high levels of passenger throughput, certainly not enough to keep an airline in business.
For those of you out of work as a result of today's news, I wish you luck. God people will always be snapped up quickly.
As for PJ. I suggest someone has a closer look at his financial affairs
For those of you out of work as a result of today's news, I wish you luck. God people will always be snapped up quickly.
As for PJ. I suggest someone has a closer look at his financial affairs
Join Date: Aug 2003
Location: Belfast
Posts: 150
Likes: 0
Received 0 Likes
on
0 Posts
easyjet to the rescue
easyJet to the rescue - Stranded EUJet passengers offered rescue package
Following the announcement that EUJet has suspended all of its operations, easyJet, Europe's leading low-cost airline, will offer those passengers stranded at their European destinations, a special rescue fee of £25 1 to return home to the UK.
easyJet has made this offer available to any EUJet passenger due to travel inbound to the UK during the next seven days (offer available until 23:59 Tuesday 2 August).
To claim the exclusive £25 rescue package, passengers should call easyJet customer services on 0871 244 2366 (other telephone numbers: in Spain 90 229 9992; in Switzerland 0848 888 222; in the Netherlands 023 568 4880; in France 08 25 08 25 08; in Greece 210 353 0300; in Germany 01803 654 321; in Italy 848 887766; in Denmark 7012 4321; in Portugal 808 204 204; in Republic of Ireland 1890 923 922; If you are telephoning from a country not listed above, you can call us on 0044 870 6 000 000) where a maximum of £25 will be charged for the flight. Passengers must provide the agent with their EUJet booking reference number and present their EUJet booking confirmation at check in as further proof of booking.
1 Includes all taxes and charges
easyJet to the rescue - Stranded EUJet passengers offered rescue package
Following the announcement that EUJet has suspended all of its operations, easyJet, Europe's leading low-cost airline, will offer those passengers stranded at their European destinations, a special rescue fee of £25 1 to return home to the UK.
easyJet has made this offer available to any EUJet passenger due to travel inbound to the UK during the next seven days (offer available until 23:59 Tuesday 2 August).
To claim the exclusive £25 rescue package, passengers should call easyJet customer services on 0871 244 2366 (other telephone numbers: in Spain 90 229 9992; in Switzerland 0848 888 222; in the Netherlands 023 568 4880; in France 08 25 08 25 08; in Greece 210 353 0300; in Germany 01803 654 321; in Italy 848 887766; in Denmark 7012 4321; in Portugal 808 204 204; in Republic of Ireland 1890 923 922; If you are telephoning from a country not listed above, you can call us on 0044 870 6 000 000) where a maximum of £25 will be charged for the flight. Passengers must provide the agent with their EUJet booking reference number and present their EUJet booking confirmation at check in as further proof of booking.
1 Includes all taxes and charges
Join Date: May 2005
Location: UK
Posts: 228
Likes: 0
Received 0 Likes
on
0 Posts
Appointment of Administrators
"PlaneStation Group PLC ('the Company')
Appointment of Administrators
The Company regrets to announce that following yesterday's announcement that its bank was no longer able to support it, Grant Thornton have been appointed as administrators to the Company. At this stage the Directors do not anticipate that the administration will result in any return to equity shareholders."
Appointment of Administrators
The Company regrets to announce that following yesterday's announcement that its bank was no longer able to support it, Grant Thornton have been appointed as administrators to the Company. At this stage the Directors do not anticipate that the administration will result in any return to equity shareholders."
Join Date: Nov 2002
Location: Kent
Posts: 239
Likes: 0
Received 0 Likes
on
0 Posts
I and my family were/are due to fly out to Murcia with EUJet on Sunday.
It would seem that this may not be the case. We have tried to contact them, but with no joy.
Anyone have any advice?
JO1 - "All Eujet F100's now being ferried from Manston to Dinard, France."
Do you know why? This seems a bit premature given the last statement that the suspensions were temporary until the next communication.
It would seem that this may not be the case. We have tried to contact them, but with no joy.
Anyone have any advice?
JO1 - "All Eujet F100's now being ferried from Manston to Dinard, France."
Do you know why? This seems a bit premature given the last statement that the suspensions were temporary until the next communication.
Join Date: Sep 2004
Location: ireland
Posts: 152
Likes: 0
Received 0 Likes
on
0 Posts
You will not be flying with EUJEt or anyone similar on that ticket - they are gone bust and you will be way down the line of unsecured creditors. You will not get your money back.
Book somewhere else quickly or if you paid via your credit card stop it or block it as soon as possible. Ring your credit card company right now. Ask for a chargeback immediately. They will not want to do a chargeback so scream and roar. Then roar some more to ther supervisor and insist that you institute a chargeback on EUJet. With a bit of luck the moeny may not have transferred to EUJet from your card if you booked in last 72 hours.
Edit I have removed the last two lines of your post. It is potentially libellous. Please use some sense. These pages are for you to use that way not to get PPRuNe fighting libel. Yellow card!
: I also deleted your third paragraph for much the same reason.
Book somewhere else quickly or if you paid via your credit card stop it or block it as soon as possible. Ring your credit card company right now. Ask for a chargeback immediately. They will not want to do a chargeback so scream and roar. Then roar some more to ther supervisor and insist that you institute a chargeback on EUJet. With a bit of luck the moeny may not have transferred to EUJet from your card if you booked in last 72 hours.
Edit I have removed the last two lines of your post. It is potentially libellous. Please use some sense. These pages are for you to use that way not to get PPRuNe fighting libel. Yellow card!
: I also deleted your third paragraph for much the same reason.
Join Date: Aug 2002
Location: San Fulgencio Spain
Posts: 41
Likes: 0
Received 0 Likes
on
0 Posts
I remember being told by a senior manager at Eujet some time back that Eujet did not get their hands on advance booking monies until the flight flew. Is this the case? Was there not a third party holding company for EUjet booking amounts?
BobD
BobD
Join Date: Aug 2003
Location: Belfast
Posts: 150
Likes: 0
Received 0 Likes
on
0 Posts
bobdee,
yes this would be pretty much standard practice for the merchant Account provider (the bank that looks after the incoming credit card monies).
It isn't the first time an airline/travel comapny has gone bust, and they are weary of companies using advance booking monies as company credit lines.
Ryan/Easy get away with it OK.
I did hear that the CEO of planesatation was taking a £2500 a day consultancy fee- I wonder upto when was he being paid?
yes this would be pretty much standard practice for the merchant Account provider (the bank that looks after the incoming credit card monies).
It isn't the first time an airline/travel comapny has gone bust, and they are weary of companies using advance booking monies as company credit lines.
Ryan/Easy get away with it OK.
I did hear that the CEO of planesatation was taking a £2500 a day consultancy fee- I wonder upto when was he being paid?