Receivership.
Thread Starter
Joined: Nov 2004
Posts: 6
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From: United Kingdom
Receivership.
Anyone know what's happened to Civil Air at Biggin Hill in the past three or four weeks. Door's locked with a notice referring to a London phone number?
Don't listen to rumour, prefer facts.
The Big 'M'
Don't listen to rumour, prefer facts.
The Big 'M'
Joined: Feb 2004
Posts: 1
Likes: 0
From: Surrey
Receivership.
As I understand the situation Civilair closed its doors in early February owing around £150,000.
I believe Graham put in around £35,000 in 2005 in an attempt to keep it going but pulled the plug in 2006.
Biggest creditor was Graham and his wife but money was owed to Rochester and Southend plus others and unfortunately about 13 members possibly some students.
I used to fly with Civilair and always found them very good I understand Paul is now with EFG.
Difficult decision now is who to fly with. Any suggestions?
Anyone need a flying partner?
Alan
I believe Graham put in around £35,000 in 2005 in an attempt to keep it going but pulled the plug in 2006.
Biggest creditor was Graham and his wife but money was owed to Rochester and Southend plus others and unfortunately about 13 members possibly some students.
I used to fly with Civilair and always found them very good I understand Paul is now with EFG.
Difficult decision now is who to fly with. Any suggestions?
Anyone need a flying partner?
Alan
Joined: Sep 2004
Posts: 267
Likes: 31
From: UK
Civil Air ceased trading on 2nd February 2006 and were put in to Creditors Voluntary Liquidation on 24 February 2006. There are about 38 creditors - the biggest one being Biggin Hill Airport - but the majority are students such as myself.
The reasons behind the collapse of the business and the subsequent problems created are probably best not discussed here. Suffice to say that anyone who owns an aircraft and leases it to a third party company should make sure they understand the implications of the company accruing debts using that aircraft and then going bust......
The reasons behind the collapse of the business and the subsequent problems created are probably best not discussed here. Suffice to say that anyone who owns an aircraft and leases it to a third party company should make sure they understand the implications of the company accruing debts using that aircraft and then going bust......
Joined: Jun 2001
Posts: 1,014
Likes: 1
From: England
Silverlise said:
'anyone who owns an aircraft and leases it to a third party company should make sure they understand the implications of the company accruing debts using that aircraft and then going bust......'
What is the legal situation surrounding this? I presume the aircraft leased for training racked up some landingfees and the operators of BH want the fees paid before the owner gets his plane back. How can you protect yourself against this.
It also reinforces the adage about never paying up front for training.
'anyone who owns an aircraft and leases it to a third party company should make sure they understand the implications of the company accruing debts using that aircraft and then going bust......'
What is the legal situation surrounding this? I presume the aircraft leased for training racked up some landingfees and the operators of BH want the fees paid before the owner gets his plane back. How can you protect yourself against this.
It also reinforces the adage about never paying up front for training.
Joined: Jun 2003
Posts: 13,787
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From: EuroGA.org
There is no way to protect yourself from getting the plane impounded.
Similarly, no way to protect yourself from somebody (who you lent/rented your plane to) doing something in e.g. France and getting it confiscated by the Customs or some other agency over there.
Another reason why planes rented/leased to flying schools tend to be old wrecks that the owner isn't too concerned about.
Similarly, no way to protect yourself from somebody (who you lent/rented your plane to) doing something in e.g. France and getting it confiscated by the Customs or some other agency over there.
Another reason why planes rented/leased to flying schools tend to be old wrecks that the owner isn't too concerned about.
Joined: Sep 2004
Posts: 267
Likes: 31
From: UK
I believe the legal situation is covered by something called a "lien" in the Civil Aviation Act.
As for protecting yourself against it, the choice appears to be either lease your aircraft wet and assume responsibility for paying all fees and charge them back to the leasing company, or if you do lease it dry, make sure you have some form of insurance to protect your interests and/or be all over the leasing company like a rash to make sure it is paying the bills.
As for protecting yourself against it, the choice appears to be either lease your aircraft wet and assume responsibility for paying all fees and charge them back to the leasing company, or if you do lease it dry, make sure you have some form of insurance to protect your interests and/or be all over the leasing company like a rash to make sure it is paying the bills.
