MK Airlines/British Global
Resuming flying and being out of the woods may not be the same thing. Remember Ansett flew for a while under administration and eventually was wound up, despite having interest from some potential major backers.
The new investors will not pour money in endlessly and will want to see a quick turn around and some positive cashflow fairly quickly. Interesting times ahead, hope for the best but don't count chickens.
The new investors will not pour money in endlessly and will want to see a quick turn around and some positive cashflow fairly quickly. Interesting times ahead, hope for the best but don't count chickens.
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@Broken Spring, as a Kenyan I can tell you it was not Dickie Evans alone that supported MK all these years but the many outgrowers who he simply brokered capacity and sales contracts for. Also. Mr evans does'nt part with cash easily and I doubt he alone funded the UK AOC.
The ability of MK to secure southbound cargo contracts with some of the biggest forwarding houses in the market which enabled them to turn up on in Kenya to fulfill their northbound obligation to Homegrown is far more siginifcant - they had other options to Homegrown. The tenacity of Mike Kruger, but above all, the calibre of the engineers and airmen MK employs are no doubt part of the reason their new investors have such confidence.
@Metro Man, I agree that a quick turnaround and a plan for fleet upgrading is essential. They have all the right people to do this with. ANSETT's situation was completely different. Air New Zealand used purchased that airline to transfer debt and re-invent its own failing brand (which it did at ANSETT's cost !).
Reading the various posts one thing is for certain. A lot more of us want to see MK survive (for whatever reasons) than those who want to see it fall. MK certainly have a safety record that nobody would be proud of - BUT - they have made huge steps to rectify this and are a different airline today to the DC8-54F outfit I remember at Jomo in the 90's (when BA tried to shut them down for offering a combi service to Europe - industrial earplugs came as standard in the pax vanity kit - and the stewardess could operate the start cart !).
Well done MK .. obviously not for sissy's and definitely men of steel
The ability of MK to secure southbound cargo contracts with some of the biggest forwarding houses in the market which enabled them to turn up on in Kenya to fulfill their northbound obligation to Homegrown is far more siginifcant - they had other options to Homegrown. The tenacity of Mike Kruger, but above all, the calibre of the engineers and airmen MK employs are no doubt part of the reason their new investors have such confidence.
@Metro Man, I agree that a quick turnaround and a plan for fleet upgrading is essential. They have all the right people to do this with. ANSETT's situation was completely different. Air New Zealand used purchased that airline to transfer debt and re-invent its own failing brand (which it did at ANSETT's cost !).
Reading the various posts one thing is for certain. A lot more of us want to see MK survive (for whatever reasons) than those who want to see it fall. MK certainly have a safety record that nobody would be proud of - BUT - they have made huge steps to rectify this and are a different airline today to the DC8-54F outfit I remember at Jomo in the 90's (when BA tried to shut them down for offering a combi service to Europe - industrial earplugs came as standard in the pax vanity kit - and the stewardess could operate the start cart !).
Well done MK .. obviously not for sissy's and definitely men of steel
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This is great news for all the people at MK and all the support staff around the world,when asked last week why do you carry on like this Mike's only answer was I have 450 people to look after,this alone shows you the calibre of the man.
I have known Mike from the skinny little airman I met in the airforce all those years ago to the man he is today,I have the utmost respect for him as a friend and now my boss.
So to all those with negative posts about Mike and the airline,get to know the man first.
Pambere na MK
I have known Mike from the skinny little airman I met in the airforce all those years ago to the man he is today,I have the utmost respect for him as a friend and now my boss.
So to all those with negative posts about Mike and the airline,get to know the man first.
Pambere na MK
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Yes very good news indeed to you all
This excellent news just shows that MK is a people person & has the wishes and livelyhoods of all his employees to consider.
Do you think MK could get slots at MAN - to rival CX & the others??
Think MK would do well at MAN if given the opportunity.
There could be a position going if CX pull out??
Be nice to see UK cargo carriers for a change rather than the Far Eastern men.
This excellent news just shows that MK is a people person & has the wishes and livelyhoods of all his employees to consider.
Do you think MK could get slots at MAN - to rival CX & the others??
Think MK would do well at MAN if given the opportunity.
There could be a position going if CX pull out??
Be nice to see UK cargo carriers for a change rather than the Far Eastern men.
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How is this to be understood?
23-Jun-2008 : MK Airlines has resumed operations after a deal was concluded with a new investor on 20 June.
The return to flying followed the Joint Administrators securing an initial funding arrangement with Transatlantic Aviation Limited (TAA), part of The Belfairs Management Group of Companies. MK Airlines immediately restarted trading and flying operations that evening and it has since been operating a near-full capacity flight programme.
Joint administrator Andrew Duncan from BKL Business Recovery, told Air Cargo News that the initial investment protected the airline from further damage caused by the grounding and that the new investors would be working on a Company Voluntary Arrangement (CVA) with creditors.
Once CVA agreements had been reached, TAA would look to invest further and probably buy the airline outright.
Duncan added that TAA were not an equity investor and were investing in the long term.
The following statement from the administrators/MK Airlines gave further details on the investment:
MK Airlines has earlier been in discussion with several interested parties about potential investments in the business to refinance and to reposition the airline with more efficient aircraft. These talks were led by the airline’s founder and chief executive officer, Mike Kruger, and following their appointment, the joint administrators.
A management team from Transatlantic Aviation Limited, is now working alongside the joint administrators and MK Airlines management to assist normal trading of the business.
Kruger, said: “We are delighted to be airborne once again. Within the next weeks and months we hope to return to a level of trading that existed prior to the appointment of our administrators. Whilst we still have some way to go to complete a formal long-term agreement for MK Airlines, this initial funding arrangement with TAA delivers what we hope will lead to a viable and prosperous long-term business strategy.”
Oldham, from BKL, said: “Upon our appointment we talked about our hope that the company could resume flying operations in the short-term. This initial investment from TAA delivered that objective and now presents us with an opportunity to look more confidently towards the future. Over the next few weeks we will be working to propose a formal way forward with MK’s creditors. If we can reach that agreement then we hope to also deliver additional funding that will secure MK’s long-term viability as a highly regarded all-cargo airline.”
The Belfairs Management Group is a diverse international organisation with an asset-base in the medical, property and aviation industries.
Transatlantic Aviation is the jewel in the crown of the group's global activities. It has a fleet of Boeing 767s and Boeing 747s, serving some of the leading airlines in the world.
(http://www.aircargonews.net/article.asp?art_id=3454)
How must we understand that initial funding arrangement, to be "updated" by an additional funding, ...if a CVA agreement with MK's creditors should be reached? It doesn't sound that nice.
The return to flying followed the Joint Administrators securing an initial funding arrangement with Transatlantic Aviation Limited (TAA), part of The Belfairs Management Group of Companies. MK Airlines immediately restarted trading and flying operations that evening and it has since been operating a near-full capacity flight programme.
Joint administrator Andrew Duncan from BKL Business Recovery, told Air Cargo News that the initial investment protected the airline from further damage caused by the grounding and that the new investors would be working on a Company Voluntary Arrangement (CVA) with creditors.
Once CVA agreements had been reached, TAA would look to invest further and probably buy the airline outright.
Duncan added that TAA were not an equity investor and were investing in the long term.
The following statement from the administrators/MK Airlines gave further details on the investment:
MK Airlines has earlier been in discussion with several interested parties about potential investments in the business to refinance and to reposition the airline with more efficient aircraft. These talks were led by the airline’s founder and chief executive officer, Mike Kruger, and following their appointment, the joint administrators.
A management team from Transatlantic Aviation Limited, is now working alongside the joint administrators and MK Airlines management to assist normal trading of the business.
Kruger, said: “We are delighted to be airborne once again. Within the next weeks and months we hope to return to a level of trading that existed prior to the appointment of our administrators. Whilst we still have some way to go to complete a formal long-term agreement for MK Airlines, this initial funding arrangement with TAA delivers what we hope will lead to a viable and prosperous long-term business strategy.”
Oldham, from BKL, said: “Upon our appointment we talked about our hope that the company could resume flying operations in the short-term. This initial investment from TAA delivered that objective and now presents us with an opportunity to look more confidently towards the future. Over the next few weeks we will be working to propose a formal way forward with MK’s creditors. If we can reach that agreement then we hope to also deliver additional funding that will secure MK’s long-term viability as a highly regarded all-cargo airline.”
The Belfairs Management Group is a diverse international organisation with an asset-base in the medical, property and aviation industries.
Transatlantic Aviation is the jewel in the crown of the group's global activities. It has a fleet of Boeing 767s and Boeing 747s, serving some of the leading airlines in the world.
(http://www.aircargonews.net/article.asp?art_id=3454)
How must we understand that initial funding arrangement, to be "updated" by an additional funding, ...if a CVA agreement with MK's creditors should be reached? It doesn't sound that nice.
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"It has a fleet of Boeing 767s and Boeing 747s, serving some of the leading airlines in the world."
Interesting!!
If you go onto Belfairs web-site then click on the Aviation tab, it shows you their "substantial" 767 fleet "working with some of the largest airlines in the world" i.e UAL and all parked in the desert
Interesting!!
If you go onto Belfairs web-site then click on the Aviation tab, it shows you their "substantial" 767 fleet "working with some of the largest airlines in the world" i.e UAL and all parked in the desert
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Transatlantic
TAA provided the 2 ex-UKIA B767-200 aircraft. One is at EMA the other is still (?) in Brunei. Both are very early ex UA 767's. Can't see it would be worthwhile putting freight doors in?
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Superspotter,
Is your suggestion then that if TAA would buy the MK airline outright after possible CVA agreements, the MK fleet would then join the UAL aircraft parked in the desert ?
Is your suggestion then that if TAA would buy the MK airline outright after possible CVA agreements, the MK fleet would then join the UAL aircraft parked in the desert ?
Basically sounds like they are back flying while negotiating with their creditors.
In this situation the creditors are asked to accept X number of cents on the dollar in full settlement of the outstanding amount. The carrot being this could be more than they would get if they forced bankrupcy, and they would have further business from the company.
Might work out for MK as their aircraft are old and wouldn't fetch much in an auction at the moment.
In this situation the creditors are asked to accept X number of cents on the dollar in full settlement of the outstanding amount. The carrot being this could be more than they would get if they forced bankrupcy, and they would have further business from the company.
Might work out for MK as their aircraft are old and wouldn't fetch much in an auction at the moment.
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Supersplutterings ..
Keep on "observing" and you might just "spot" a 767F in MK livery sooner or later.I understand the boneyards are where Mike Kruger found his first 747F and there is no reason why he cant make it happen again !. And thats snarfel with one "L" not two - poor "oberseravavations" 
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B767f ?
A B767F would never work for African routes. Still too thirsty versus achievable yield. A B747F does.....depending upon price of fuel and how many hands you have to cross with silver.
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This is a real can of worms. Yes - Belfairs bought 18 ex UAL 767's for around $3M each and sold about half to Gabon, Russia and a couple of other unfussy operations. They also bought two 747 combis from Kuwait Air. No doubt Belfairs have suggested to MK that they pay to put these aircraft back into service then lease them from Belfairs - this is exactly what happened with UKIA and their B767's.
1000 dollar question - has Belfairs actually paid over hard cash to MK or the administrators - if not then why not....
1000 dollar question - has Belfairs actually paid over hard cash to MK or the administrators - if not then why not....
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Towerman
Those of us that know MK Airlines, have great respect for their guys & gals and also for Mike K; it therefore comes as a surprise that they have become involved with "investors" such as Belfairs/TAA, who (from what I've heard recently) can only be described as a bunch of Cowboys.
I tend to agree with your synopsis regarding the B747 combi's, as this was certainly what Belfairs did to UKIA with the B767's - unfortunately in that case they were dealing with an even bigger Cowboy!!!
It will certainly be interesting to see how this all pans-out but my thoughts are with the hard-working people of MK Airlines who have a past (and I hope future) to be proud of.
Those of us that know MK Airlines, have great respect for their guys & gals and also for Mike K; it therefore comes as a surprise that they have become involved with "investors" such as Belfairs/TAA, who (from what I've heard recently) can only be described as a bunch of Cowboys.
I tend to agree with your synopsis regarding the B747 combi's, as this was certainly what Belfairs did to UKIA with the B767's - unfortunately in that case they were dealing with an even bigger Cowboy!!!
It will certainly be interesting to see how this all pans-out but my thoughts are with the hard-working people of MK Airlines who have a past (and I hope future) to be proud of.
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Bear - I have no truck with MK who have done an incredible job over many years and in the face of adversity. I am just concerned that all is not what it may seem. What was that saying - beward the man who comes bearing gifts... There are liens all over the place on the TAA 767s and Est Midlands Airport and Brunei Maintenance where the aircraft are sitting will surely take steps to seize them. I do not believe they are insured nor that bills are paid for maintenance. Therefore I have to conclude that NO MONEY in hard cash terms has been paid to MK because there is no money.......................
While under administration, the administrator guarantees payment for any debt incurred AFTER he takes over. Therefore, as long as fuel, landing fees, crew wages, insurance, handling and ATC charges are paid the aircraft can fly as long as the maintenance release is current.
It is short term only, to keep the company alive to be sold as a going concern ,or possibly generate some more funds for the creditors if things are wound up. Attractive rates could be offered as the administrator isn't concerned with long term planning for major checks, engine overhauls and eventual fleet replacement. As long as he can turn a profit after covering the day to day costs, aircraft fly.
MK have a fleet of obsolete, fuel inefficient aircraft. The business model may have worked when oil was cheap, ie it burns more fuel but costs alot less to lease/buy. With the current fuel price this MAY have been turned on its head, airlines in the states are rushing to retire their MD80s, DC9s and 727/737-200, and replace them with modern economical types.
However if the creditors push for things to be wound up the aircraft are unlikely to realise much in a fire sale with oil at record highs and everyone else dumping older jets. It may be in their interest to forgive a % of MKs debts and allow a restructuring plan to get things going again. But modern freighters may be difficult and expensive to obtain with everyone else having the same idea, also an investor would need to be adventerous to invest in aviation at the moment.
Interesting times.
It is short term only, to keep the company alive to be sold as a going concern ,or possibly generate some more funds for the creditors if things are wound up. Attractive rates could be offered as the administrator isn't concerned with long term planning for major checks, engine overhauls and eventual fleet replacement. As long as he can turn a profit after covering the day to day costs, aircraft fly.
MK have a fleet of obsolete, fuel inefficient aircraft. The business model may have worked when oil was cheap, ie it burns more fuel but costs alot less to lease/buy. With the current fuel price this MAY have been turned on its head, airlines in the states are rushing to retire their MD80s, DC9s and 727/737-200, and replace them with modern economical types.
However if the creditors push for things to be wound up the aircraft are unlikely to realise much in a fire sale with oil at record highs and everyone else dumping older jets. It may be in their interest to forgive a % of MKs debts and allow a restructuring plan to get things going again. But modern freighters may be difficult and expensive to obtain with everyone else having the same idea, also an investor would need to be adventerous to invest in aviation at the moment.
Interesting times.
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Transatlatic Aviation Ltd
No company can by found by the name of TAA at the Companieshouse
WebCHeck - Select and Access Company Information
The only company I can trace is as follows:
company number:01605394
company name:TRANSATLANTIC AVIATION LIMITED
Registered office address:
63 JERMYN STREET
LONDON SW1
statusissolved 03/02/1987
incorpoarated on 21/12/1981
Certainly not British! Who the heck is TAA. Supposetly a leasing company?
With no planes?
Or is it based on a tax shelter for obvious reasons?
WebCHeck - Select and Access Company Information
The only company I can trace is as follows:
company number:01605394
company name:TRANSATLANTIC AVIATION LIMITED
Registered office address:
63 JERMYN STREET
LONDON SW1
status
issolved 03/02/1987 incorpoarated on 21/12/1981
Certainly not British! Who the heck is TAA. Supposetly a leasing company?
With no planes?
Or is it based on a tax shelter for obvious reasons?