Aer Arann
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Is the investor connected with Eastern Airways? Air Kilroe points to their website, a similar regional turboprop operator.
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Galway & Waterford - Southend confirmed...presumably they will also connect more profitable routes or this will be a short-lived relationship?
Sobart "Aer Arann will fly to London Southend from Waterford and Galway from next March. “It’s all about Southend for us,” he said of the company’s €2.5 million investment in Aer Arann."
http://www.irishtimes.com/newspaper/...282633807.html
http://www.irishtimes.com/newspaper/...282633814.html
Sobart "Aer Arann will fly to London Southend from Waterford and Galway from next March. “It’s all about Southend for us,” he said of the company’s €2.5 million investment in Aer Arann."
http://www.irishtimes.com/newspaper/...282633807.html
http://www.irishtimes.com/newspaper/...282633814.html
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Aer Arann to exit examinership after agreement with Revenue
By John Mulligan
Thursday November 04 2010
Aer Arann is set to formally exit examinership next Wednesday as the High Court prepares to green light a scheme of arrangement which, in the past few days, had hinged on an agreement with the Revenue Commissioners.
It also emerged that Tim Kilroe Jnr, the son of former Aer Arann majority owner Tim Kilroe Snr, is to invest €2.2m in the airline once it exits examinership. It's not yet clear what size stake he will have in the carrier, but it will be substantial.
Examiner Michael McAteer of Grant Thornton was forced to go back to the court yesterday after Ms Justice Mary Finlay Geoghegan said last Friday that she had "serious and significant concerns" about a survival scheme put to the court.
The Revenue Commissioners is owed a total of over €1.1m from Aer Arann and agreement has now been reached between the two parties that will be formally approved by the court tomorrow, allowing it to exit examinership next week. The judge said what remained to be done was a "clerical exercise".
Aer Arann executive chairman Padraig O Ceidigh welcomed the move. "As an island nation it's vital we have a competitive aviation industry to help promote economic revival."
He added that it was important that jobs were created in aviation and other sectors to help the country emerge from its current difficulties.
Tim Kilroe added he was "delighted" to be involved again with Aer Arann. He said it was a "very exciting time with huge opportunities for the airline to grow". He added that the involvement of UK transport group Stobart, which has pledged to spend €2.5m promoting Aer Arann flights to its London Southend Airport, as well as the franchise agreement with Aer Lingus, are critical for Aer Arann's future prospects.
Mr Kilroe's father was a majority owner of Aer Arann from 1981 until 1994, when he sold his 66pc stake to Padraig O Ceidigh.
Aer Arann chief executive Paul Schutz said outside court yesterday evening that the effective approval of the scheme was a "good day" for Aer Arann and said it showed the court believed the airline has a viable business model. He said the airline's 321 staff would also be relieved at the outcome.
"The aviation industry is always challenging, but Aer Arann is now very well positioned for the future," he said, adding that the additional investment from Mr Kilroe would add more "financial solidity" to the company.
He said he hoped Aer Arann's franchise agreement with Aer Lingus would certainly be deepened in the future, and maintained that there were significant opportunities for Aer Arann at London Southend Airport.
Aer Arann had entered examinership after racking up substantial losses over the past couple of years. Its creditors were owed almost €30m, with Allied Irish Banks being the largest creditor, owed €5.2m.
- John Mulligan
Irish Independent
By John Mulligan
Thursday November 04 2010
Aer Arann is set to formally exit examinership next Wednesday as the High Court prepares to green light a scheme of arrangement which, in the past few days, had hinged on an agreement with the Revenue Commissioners.
It also emerged that Tim Kilroe Jnr, the son of former Aer Arann majority owner Tim Kilroe Snr, is to invest €2.2m in the airline once it exits examinership. It's not yet clear what size stake he will have in the carrier, but it will be substantial.
Examiner Michael McAteer of Grant Thornton was forced to go back to the court yesterday after Ms Justice Mary Finlay Geoghegan said last Friday that she had "serious and significant concerns" about a survival scheme put to the court.
The Revenue Commissioners is owed a total of over €1.1m from Aer Arann and agreement has now been reached between the two parties that will be formally approved by the court tomorrow, allowing it to exit examinership next week. The judge said what remained to be done was a "clerical exercise".
Aer Arann executive chairman Padraig O Ceidigh welcomed the move. "As an island nation it's vital we have a competitive aviation industry to help promote economic revival."
He added that it was important that jobs were created in aviation and other sectors to help the country emerge from its current difficulties.
Tim Kilroe added he was "delighted" to be involved again with Aer Arann. He said it was a "very exciting time with huge opportunities for the airline to grow". He added that the involvement of UK transport group Stobart, which has pledged to spend €2.5m promoting Aer Arann flights to its London Southend Airport, as well as the franchise agreement with Aer Lingus, are critical for Aer Arann's future prospects.
Mr Kilroe's father was a majority owner of Aer Arann from 1981 until 1994, when he sold his 66pc stake to Padraig O Ceidigh.
Aer Arann chief executive Paul Schutz said outside court yesterday evening that the effective approval of the scheme was a "good day" for Aer Arann and said it showed the court believed the airline has a viable business model. He said the airline's 321 staff would also be relieved at the outcome.
"The aviation industry is always challenging, but Aer Arann is now very well positioned for the future," he said, adding that the additional investment from Mr Kilroe would add more "financial solidity" to the company.
He said he hoped Aer Arann's franchise agreement with Aer Lingus would certainly be deepened in the future, and maintained that there were significant opportunities for Aer Arann at London Southend Airport.
Aer Arann had entered examinership after racking up substantial losses over the past couple of years. Its creditors were owed almost €30m, with Allied Irish Banks being the largest creditor, owed €5.2m.
- John Mulligan
Irish Independent
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Don't get me wrong, it's great news that the jobs of the Arann staff are safe. From a pax point of view they are probably the strongest asset of the company. However I just hope the move of the WAT and GWY routes from Luton to Southend will work out for them and sustain the current level of flights to WAT and GWY.
As a regular on those flights, I just feel its more than coincidence that there has been WAT-LTN sevices almost on and off since the 80's with the huge NW London Irish population and handy cross London links from the south on the Thameslink route. RE alone have been on the route since 2004. Are they leaving a nicely matured route wide open for a competitor to jump in maybe. In the long term its might not be in anybodys interest for that to happen but leaving LTN just seems a huge own goal in my eyes.
As a regular on those flights, I just feel its more than coincidence that there has been WAT-LTN sevices almost on and off since the 80's with the huge NW London Irish population and handy cross London links from the south on the Thameslink route. RE alone have been on the route since 2004. Are they leaving a nicely matured route wide open for a competitor to jump in maybe. In the long term its might not be in anybodys interest for that to happen but leaving LTN just seems a huge own goal in my eyes.
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I agree irish laddie. It doesn't make much sense to route Irish flights across or around London airspace to land 40 miles to the east, especially with turboprop equipment, no matter how good the rail links from SEN. Fernchurch St/Liverpool St have nothing like the connectivity of the Thameslink line -Bedford to Brighton, 2 main London interchanges & LGW. LTN was and is the obvious London destination for RE. 2012 may be good for business at SEN, but should be regarded as a bonus. I can see more GWY to London traffic haemoraging to NOC/SNN
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LTN was and is the obvious London destination for RE. 2012 may be good for business at SEN, but should be regarded as a bonus. I can see more GWY to London traffic haemoraging to NOC/SNN
We still don't have a lot of details, LTN move hasn't been confirmed in the articles I've seen. Don't know if SEN will be a base or where are aircraft are moving from. The future of the PSO schemes may become clearer after the budget in December.
Todays Times article did confirm EIR is going to 7 aircraft from March from 5, presumably 2 more 72s out of RE network.
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The recent introduction of a 10 euro pax charge @ GWY makes the airport less competitive -I hear that SNN could introduce something similar too. If the Budget axes PSO's and subventions to the regional airports and RE reduces services there will be big problems all round.
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Interesting article in todays Independent. It seems Galway Airport objected to the RE rescue plan (death wish?) Also Aer Arann have broken the hangar lease. Does that mean more aircraft leaving GWY base?
Airport in Aer Arann objection - Irish, Business - Independent.ie
Airport in Aer Arann objection
GALWAY Airport, which counts Aer Arann as virtually its sole flight operator, objected at a creditors' meeting last month to a scheme of arrangement put forward by the airline's examiner, Michael McAteer of Grant Thornton.
The airport was owed €518,000 by Aer Arann for the provision of operational services and was also in line to be paid roughly €1.7m by Aer Arann under a 20-year lease that the airline had on a hangar...
Galway Airport will receive just under €52,000 of the €518,000 that it is owed. It is believed that Aer Arann has also agreed to pay a six-figure sum to the airport as a lease break fee on the hangar it uses.
Speaking to the Irish Independent yesterday, Galway Airport managing director Joe Walsh refused to say whether the airport's board had objected at the creditors' meeting, but refuted comments made by Aer Arann chairman Padraig O Ceidigh that the airport had "voted to liquidate" the airline.
Airport in Aer Arann objection - Irish, Business - Independent.ie
Airport in Aer Arann objection
GALWAY Airport, which counts Aer Arann as virtually its sole flight operator, objected at a creditors' meeting last month to a scheme of arrangement put forward by the airline's examiner, Michael McAteer of Grant Thornton.
The airport was owed €518,000 by Aer Arann for the provision of operational services and was also in line to be paid roughly €1.7m by Aer Arann under a 20-year lease that the airline had on a hangar...
Galway Airport will receive just under €52,000 of the €518,000 that it is owed. It is believed that Aer Arann has also agreed to pay a six-figure sum to the airport as a lease break fee on the hangar it uses.
Speaking to the Irish Independent yesterday, Galway Airport managing director Joe Walsh refused to say whether the airport's board had objected at the creditors' meeting, but refuted comments made by Aer Arann chairman Padraig O Ceidigh that the airport had "voted to liquidate" the airline.
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Well, you have to expect that the Galway PSO is going to disappear by next summer if not sooner, and the RE GWY-DUB service will likely vanish along with it (along with the PSO cross-subsidy element that reduces the operating costs of RE's other GWY routes). Meanwhile if the Stobart investment foresees RE's "centre of gravity" shifting towards Southend (which is logical), then the outlook for RE's GWY network does not seem overly rosy.
Great international connections from SEN too
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Hi All
EI-SLN has appeared from the hangar with the new green Aer Arann scheme. http://aerspace.files.wordpress.com/...pg?w=500&h=333
Also routes from Galway to Luton on Saturdays are being combined with via Waterford from the end of the month until March 2011. Although its not much of a stop over im sure its effecting nubers flying on those flights that drop in.
5Q
EI-SLN has appeared from the hangar with the new green Aer Arann scheme. http://aerspace.files.wordpress.com/...pg?w=500&h=333
Also routes from Galway to Luton on Saturdays are being combined with via Waterford from the end of the month until March 2011. Although its not much of a stop over im sure its effecting nubers flying on those flights that drop in.
5Q
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Great news about Aer Arann coming out of examinership, good luck for the future to everyone involved in the airline.
I think both EI-SLL & EI-SLN will be the 2 additional aircraft going to the Aer Lingus Regional operations in March.
I flew on SLL the other week and inside it's very nice. I hope in the coming months RE are able to paint their aircraft in a uniform livery, the blue livery. The green doesn't look good!
I do hope they keep the Luton routes as well as starting new routes to Southend.. time will tell :-)
I think both EI-SLL & EI-SLN will be the 2 additional aircraft going to the Aer Lingus Regional operations in March.
I flew on SLL the other week and inside it's very nice. I hope in the coming months RE are able to paint their aircraft in a uniform livery, the blue livery. The green doesn't look good!
I do hope they keep the Luton routes as well as starting new routes to Southend.. time will tell :-)
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[quote]Also routes from Galway to Luton on Saturdays are being combined with via Waterford from the end of the month until March 2011. Although its not much of a stop over im sure its effecting nubers flying on those flights that drop in.
It might make economic sense but zero for marketing when NOC/SNN to STN/LHR/LGW/LTN is around 65 min against around 2hr 30min? for GWY-WAT-LTN. You can drive from Galway to NOC/SNN in the extra time taken
It might make economic sense but zero for marketing when NOC/SNN to STN/LHR/LGW/LTN is around 65 min against around 2hr 30min? for GWY-WAT-LTN. You can drive from Galway to NOC/SNN in the extra time taken
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Southend
Can someone explain "Why" Southend?
WTF? I'm sure for some operators it'll make perfect sense - but not in RE's case.
WAT/GWY - LTN - decent Irish contingent. Over the years people have been trained to zoom into LTN, hop on the bus, thameslink and in. No hassle.
In the early years Cityjet tried to "re train" the consumer and fly LCY. RE have just sorted the cash- and now they are going to move from their cash cow to an airport which will involve - retraining the consumer to a new airport -which most likely they've never heard of. As bad at "London Stansted" was with FR - London Southend which is really Eastend Eastend will be great sport.
I can just see the phonecalls to RE Res "Hello I want to go to Luton" - Oh we don't fly there anymore ...........end of call. or "Well Oleary international airways do" etc etc. .......................then you've Waterford - itis. For years many queried putting Waterford Airport close to the sea. ie cutting off 1/2 the potential catchment due to there being ocean south of the airport. Now at Southend you've the same issue. South of Southend Airport is "southend" and it's huge irish contingent. I hope alot of Southenders plan on visiting Ireland.
So you've cut off 180 degress of potential clients. Now you can look north - well you were going to get these folk anyways. So you've cut off potential traffic from North of Luton, South of Luton - oh all compass points.
OLeary Int Airways will love picking up RE's clients without having to so much as lift a finger.
The people of RE are a tremendous group - but is this the price they have to pay for having Stobarts investing in them? the world revolving around Southend. I really really hope I have to eat my words.
Slan
Shamrogue
WTF? I'm sure for some operators it'll make perfect sense - but not in RE's case.
WAT/GWY - LTN - decent Irish contingent. Over the years people have been trained to zoom into LTN, hop on the bus, thameslink and in. No hassle.
In the early years Cityjet tried to "re train" the consumer and fly LCY. RE have just sorted the cash- and now they are going to move from their cash cow to an airport which will involve - retraining the consumer to a new airport -which most likely they've never heard of. As bad at "London Stansted" was with FR - London Southend which is really Eastend Eastend will be great sport.
I can just see the phonecalls to RE Res "Hello I want to go to Luton" - Oh we don't fly there anymore ...........end of call. or "Well Oleary international airways do" etc etc. .......................then you've Waterford - itis. For years many queried putting Waterford Airport close to the sea. ie cutting off 1/2 the potential catchment due to there being ocean south of the airport. Now at Southend you've the same issue. South of Southend Airport is "southend" and it's huge irish contingent. I hope alot of Southenders plan on visiting Ireland.
So you've cut off 180 degress of potential clients. Now you can look north - well you were going to get these folk anyways. So you've cut off potential traffic from North of Luton, South of Luton - oh all compass points.
OLeary Int Airways will love picking up RE's clients without having to so much as lift a finger.
The people of RE are a tremendous group - but is this the price they have to pay for having Stobarts investing in them? the world revolving around Southend. I really really hope I have to eat my words.
Slan
Shamrogue
I doubt there is anyone who supports the regeneration of SEN more than I do, but I really don't think it's the destination for the GWY and WAT routes.
What I think really would be in RE's interests would be to base a couple of aircraft at SEN to establish a network of mainland UK and near European routes. That would satisfy Stobart's objectives in investing in RE while offering the airline a secure base from which to develop a route network which is not solely reliant on the Irish economy. SEN has sufficient core catchment (600,000 plus), has easy access to/from east London with the new station and is an attractive London arrival point from secondary European cities. It is also immune from RYR route predation, a fact which should not be overlooked in my view.
I would be surprised if the 'new' RE owners are not looking hard at this proposed route transfer and perhaps Tim Kilroe Jr will exert some influence on the final decision.
What I think really would be in RE's interests would be to base a couple of aircraft at SEN to establish a network of mainland UK and near European routes. That would satisfy Stobart's objectives in investing in RE while offering the airline a secure base from which to develop a route network which is not solely reliant on the Irish economy. SEN has sufficient core catchment (600,000 plus), has easy access to/from east London with the new station and is an attractive London arrival point from secondary European cities. It is also immune from RYR route predation, a fact which should not be overlooked in my view.
I would be surprised if the 'new' RE owners are not looking hard at this proposed route transfer and perhaps Tim Kilroe Jr will exert some influence on the final decision.
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I think the SEN gig is very much riding on the 2012 olympics, and more like a shuttle service for teams etc as i believe the americans/canandians may be based in ireland to acclamitise prior to the games but long term SEN vs LCY etc etc. not so sure.