AER ARANN looks set to be taken over by a group comprising its current owner Pádraig Ó Céidigh and an overseas listed company.
It is understood that the airline’s examiner is in the final stages of negotiations with the parties about a multi-million-euro investment package into the cash-strapped regional airline.
This is likely to be presented to the High Court on Monday for approval. A scheme of arrangement would then be put to the company’s creditors.
If given the green light, this investment would save up to 300 jobs at the ailing airline.
In spite of making a profit of more than €4.4 million in 2007, Aer Arann, which leases 13 aircraft, has lost about €6 million in each of the three years since.
Final bids for Aer Arann were received earlier this week and it is understood that three parties submitted offers.
A spokesman for Aer Arann confirmed yesterday that a “preferred bidder” was likely to be chosen by Monday. “The examiner will then go back to the court and present his plan,” he added.
The spokesman declined to comment further.
Neither Mr Ó Céidigh nor the examiner, Michael McAteer of Grant Thornton, could be reached for comment yesterday.
The identity of the listed company that has offered to take control of Aer Arann is not clear.
Mr Ó Céidigh, a Galway native, had previously considered putting together a bid in conjunction with other Irish businessmen, including Kerry entrepreneur Jerry Kennelly. But this plan did not materialise and Mr Ó Céidigh has since linked up with the listed company.
It is believed that the Irish entrepreneur will have an equity stake in Aer Arann if the bid is successful. But it is not clear if he will retain his role as chairman.
Aer Arann was placed into examinership in August. It recorded losses of €6 million in the first seven months of this year and was in danger of running out of cash.
Its biggest creditor is AIB, which is owed €3.9 million. It also owes just under €2 million to the Dublin Airport Authority in aeronautical fees.
Aer Arann’s difficulties come in spite of a strong start to its regional service with Aer Lingus to regional airports in Britain.
This has carried more than 100,000 passengers since its launch on March 28th. Aer Lingus receives a franchise fee for every flight flown.
