The Irish High Court has signed off on a survival scheme that allows regional airline CityJet to exit examinership, saving 140 jobs in the process.
The company formally entered restructuring back in April, as the effects of the coronavirus downturn spread to Europe.
After four months of closed-door talks, the company has gone public with the slimmed-down CityJet approved by both the court and creditors. About 140 employees will retain their positions, compared with 400 before the crisis.
“After almost four months, CityJet today exited the examinership process and, although much smaller than before, we now have a solid business upon which we can continue the development of the airline and seek to grow again as the market recovers,” said CityJet chief executive Pat Byrne.
”The process of examinership and the necessity to resize the business regrettably came at a significant personal consequence for many and our thoughts go out to the many loyal and committed colleagues who sadly have lost their jobs with CityJet.
”With Examinership behind us, CityJet is now very well positioned to play a key role in the re-emergence of the European regional aviation industry.”
At the time, the impact of the pandemic interrupted a planned merger with Spanish carrier Air Nostrum and a proposed private restructure of the company, according to documents submitted before presiding judicial officer, Justice Quinn.
CityJet said it had debts of €500 million, and at the time of entering the examinership process had a net deficit of liabilities over assets on a going concern basis of €186 million.
CityJet has focused on its wet-lease business since ending scheduled passenger flights in its own right in the winter of 2018, including contracts with Aer Lingus and SAS.
