Aer Arran in bankruptcy protection

Date added: 28 August, 2010

27.8.2010 (BBC)

The Irish regional airline, Aer Arran, has entered a bankruptcy protection process
after suffering losses of 18m euros since 2008.

The airline said the ash cloud had added to its problems

The High Court in Dublin has appointed an interim examiner to the airline

That is a process of Irish company law which protects a firm from its creditors
while it comes up with a restructuring plan.

The company, which employs 320 people, said the move would not affect day-to-day
business

Aer Arann added that there would be no impact on customer travel or bookings.

Volcanic ash

The decision of the company’s board to apply for examinership followed two years
of loss-making trading.

It said the airline had been on budget for this year, but was badly affected
by the disruption caused by volcanic ash from Iceland.

The airline lost around 6m euros in both 2008 and 2009. Losses of 6m euros have
been incurred so far this year.

Aer Arran flies from City of Derry airport to Dublin and Sligo.

A service between Belfast City and Cork was suspended in July.

Meanwhile the High Court in Dublin has also appointed an examiner to McInerney
Homes, one of Ireland’s best-known house builders.

The move was sought by its parent company McInerney Holdings, which is trying
to restructure its debts and find new investment for the group.

McInerney’s UK and Spanish divisions, as well as its commercial arm Hillview
Developments, are not affected by the court move.