FUTURA GAEL, the Swords, Co Dublin-based charter airline that ceased flying yesterday, was given a clean bill of health in April by the aviation regulator as part of an annual review of its air services.
The Commission for Aviation Regulation awarded Futura Gael a five-year air carrier operating licence in March 2007.
Documents filed with the Companies Office here indicate that Futura Gael made a profit of about €2.7 million last year.
Abridged accounts for the year to the end of October 2007 show that it had accumulated profits of just over €2.8 million at the end of its financial year. The airline had shareholder funds of more than €4 million, according to the accounts filed. It owed creditors just under €6 million but had current assets of about €10 million, including cash reserves of €8.6 million. The financial statements were approved and signed off by the board of Futura Gael on March 18th this year.
One source familiar with the company said it had annual turnover of about €5 million.
In a statement issued yesterday, Futura Gael's Spanish parent group said its difficulties related to the "speculative and exaggerated increase in the price of oil in recent months". Two months ago, Futura hired outside experts to help establish a viability plan that would include an outside investor. "So far it has not been possible to obtain an investor and to this end a decision had to be made," the company stated.
A number of service providers at Dublin airport are believed to be owed money by Futura Gael. The Dublin Airport Authority is thought to be owed up to €500,000.
Futura Gael was the Irish arm of the Majorca-based Futura Group, which operated 38 aircraft and had revenues of €335 million.
Based in Spain, Futura was set up by Aer Lingus in 1990. It was headed by Willie Walsh, the former Aer Lingus chief executive who now leads British Airways.
Aer Lingus sold an 80 per cent stake to Futura's then management for an estimated €28 million in 2002 and offloaded the balance of its holding in October last year for just over €11 million.