City Star (X9)
Join Date: Oct 2006
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Citystar airlines ceases ops
From their website:
Shame that a ground incident can be the last straw that takes company down...
"In the aftermath of the incident at Aberdeen Airport on November 25, 2007 involving City Star Airlines Dornier 328-100 aircraft TF-CSB and mobile passenger steps from SGS Ground Handling Aberdeen, we suffered the immediate loss of an aircraft which required us to take emergency measures to secure continued operation, explained Runar Fossadal Arnason, managing director of City Star Airlines.
“Unfortunately the incident has had a major knock on effect and we have simply not been able to recover from this and as of midnight tonight have ceased all operations.”
“Unfortunately the incident has had a major knock on effect and we have simply not been able to recover from this and as of midnight tonight have ceased all operations.”
Wondered what was going on. Was in ABZ last night and during turnround heard ATC and ops discussing towing an impounded Donier, which I later saw was a CityStar Dornier. Sounds like someone hadn't been paying bills if an aircraft got impounded.
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Houston we have a problem
Flight Global's ATI has reported today that City Star has ceased operations with extensive quotes from the airline MD.
So we won;t be seeing Dornier 328s operating transatlantic this year!
So we won;t be seeing Dornier 328s operating transatlantic this year!
Join Date: Mar 2004
Location: Scotland
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For want of a catering truck the empire was lost, the poor driver, how must he be feeling. I see the City Star owner from Aberdeen received an honorary doctorate at RGU just before Xmas. Maybe the robes he was wearing were a bit like the emporers new clothes.........Aberdeen to Houston, direct, come on waken up and smell the bulls**t.
http://news.bbc.co.uk/1/hi/scotland/...st/7218959.stm
bit confusing though with the last paragraph of this article.
Nivsy.
bit confusing though with the last paragraph of this article.
Nivsy.
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If an airline goes under because of one ground damage, then it shows what a state they were in, I cannot see BA going under because of the 777 the other week! OK I know BA are a little bigger etc but still the question needs to be asked, they must have been wobbling before the ground incident
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Yet another chapter in Aberdeen aviation closes!! My best wishes to those City Star staff who, I am assuming were not paid for Jan and have now got to find a new employer as well. 
I had heard snippets of stories about possible cash flow problems before the ground incident and that things didn't look that rosy for the future! Think the warning signs have been around for the past few weeks.
I hope that City Star Executive will work but I fear that this will follow in the same direction!
I had heard snippets of stories about possible cash flow problems before the ground incident and that things didn't look that rosy for the future! Think the warning signs have been around for the past few weeks.
I hope that City Star Executive will work but I fear that this will follow in the same direction!
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Surely SGS Insurance would have paid out quickly and got them flying again
It may not be the full reason for the ceasation of ops - but certainly another nail in the coffin if already in financial difficulties.
Fit like min?
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So man from SGS drives a set of steps into a/c & insurers WON'T play ball? 
Who's fault was it? Oh, he had to avoid that bloody FOX that runs about the airport!
Apparently the desperate attempts to save City Star included an attempt to have one of their charterers buy & lease back an a/c to them. But person didn't fancy dealing with an unsecured loan.
It seems the MD still thinks X9 can be saved. He says the parent company have the money to restart it. But surely the parent company therefore also had the ability to pay salaries & other outstanding bills?
BAA say all bar the impounded DO328 can leave, but given that SB is injured in the hangar, that one won't be going anywhere soon either.
I agree, planning for future expansion is all well & good, but IAH was so far removed from the original business plan.
Guess we'll have to wait & see if anything good comes out of it. A great shame to lose another ABZ-based operator...too many of them down the years.
Who's fault was it? Oh, he had to avoid that bloody FOX that runs about the airport!
Apparently the desperate attempts to save City Star included an attempt to have one of their charterers buy & lease back an a/c to them. But person didn't fancy dealing with an unsecured loan.
It seems the MD still thinks X9 can be saved. He says the parent company have the money to restart it. But surely the parent company therefore also had the ability to pay salaries & other outstanding bills?
BAA say all bar the impounded DO328 can leave, but given that SB is injured in the hangar, that one won't be going anywhere soon either.
I agree, planning for future expansion is all well & good, but IAH was so far removed from the original business plan.
Guess we'll have to wait & see if anything good comes out of it. A great shame to lose another ABZ-based operator...too many of them down the years.
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Read in the P&J today that the directors have been siphoning off the cash for a while and sending it off to Iceland. Apparantly the staff were paid late in december and none of them have been paid for January, so nothing in 2008 at all! I also hear that the previous round of redundancies never received any redundancy money up front and were put on "leave" and have also not received anything, seems like it was all a cover story from the powers that be!
Some say it was a good outfit but dreams of jets to Texas have definately been part of the eyes off the ball issues.
I'll say this; I know and have met many other of the X9 crew, a good bunch of lads and lassies who did a good and very professional job and who certainly dont deserve to be treated this way. Seems like they have been taken for a ride. The first priority of any company in trouble should be to pay their staff, not divert money abroad to finance pipedreams and if you make people redundant, you have to pay, anything else is illegal. If they have the money to restart as they say, then pay the staff first.
I have been treated like this before by another employer and it leaves a scar (can you tell?). I hope that this sorry shambles works out for those that deserve better.
The real icing on the cake of course is that the CEO collected an honarary doctorate in business and then paid off 20 staff 2 days later in November and then his business collapses with massive debts in January. Shame on him, he knew all along.
Sad all round.
Some say it was a good outfit but dreams of jets to Texas have definately been part of the eyes off the ball issues.
I'll say this; I know and have met many other of the X9 crew, a good bunch of lads and lassies who did a good and very professional job and who certainly dont deserve to be treated this way. Seems like they have been taken for a ride. The first priority of any company in trouble should be to pay their staff, not divert money abroad to finance pipedreams and if you make people redundant, you have to pay, anything else is illegal. If they have the money to restart as they say, then pay the staff first.
I have been treated like this before by another employer and it leaves a scar (can you tell?). I hope that this sorry shambles works out for those that deserve better.
The real icing on the cake of course is that the CEO collected an honarary doctorate in business and then paid off 20 staff 2 days later in November and then his business collapses with massive debts in January. Shame on him, he knew all along.
Sad all round.
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The real icing on the cake of course is that the CEO collected an honarary doctorate in business and then paid off 20 staff 2 days later in November and then his business collapses with massive debts in January.
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The P & J online article is here at:
http://www.pressandjournal.co.uk/dis...entPK=19775991
http://www.pressandjournal.co.uk/dis...entPK=19775991