Revenue yet to decide position on Cityjet survival scheme

The Revenue Commissioners have yet to decide whether to oppose an application to the High Court to approve a survival scheme for the regional airline CityJet.

At the High Court on Friday Mr Justice Michael Quinn heard that Revenue is seeking clarification from the airline's court appointed examiner on what it regards as important issues.

The examiner Mr Kieran Wallace of KPMG is recommending that the scheme be approved, but his counsel James Doherty SC said that it was not clear if Revenue will support a scheme that will result in the retention of 146 Irish based jobs.

The hearing of the application to have the scheme formally approved by the High Court is fixed for next week.

Counsel said Mr Wallace, who was appointed as CityJet DAC's examiner in April, had secured the required level of statutory support from the airline's creditors for the scheme of arrangement.

If approved by the Court the arrangement with the creditors will allow the business to continue to survive as a going concern.

The airline and its subsidiaries flies routes on behalf of other airlines had employed 1,175 people, 417 of whom had been based in Dublin.

CityJet no longer flies scheduled routes, and has moved to a model known in the aviation industry known as 'wet leasing' where it provides serviced aircraft and crews to operate routes for other carriers.

It has 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.

Its creditors include the Triangle Group, various firms involved in aircraft leasing, Investec, the Revenue Commissioners, as well as debts owed to related companies.

Previously the court heard that the airline had recommenced flying routes on behalf of its biggest customer SAS.

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