Aer Arann petitions Irish court for protection from creditors

Irish regional Aer Arann last week said it filed a petition to enter into examinership, the Irish legal process similar to Chapter 11 bankruptcy in the US. A Sept. 8 court hearing to consider the petition has been set. Aer Arann CEO Paul Shultz recently told ATW, "It is fair to say that we had a difficult two years" in 2008 and 2009 (ATW, June 1). As a privately held company, the carrier does not publish financial results, but it admitted in the examinership petition it lost "approximately €6 million [$7.6 million] in each of 2008 and 2009. Losses of €6 million have been incurred to date [in 2010]."

The regional said in a statement, "No flights have been canceled or are planned to be canceled and reservations can continue to be made…Aer Arann intends to operate normally during the period of examinership and intends to fly all Aer Arann services and all Aer Lingus Regional services operated under the airline's franchise agreement with Aer Lingus."

The airline said following the Sept. 8 hearing, it "expects to remain in examinership for an initial period of up to 70 days. During that time, the company will benefit from the protection of the court from its creditors so that it can reorganize and restructure the business." It said it plans to "negotiate with potential investors" while under court protection, adding that "a number of parties have expressed their interest in the airline."