A former director of Celtic Helicopters this week described the company's initial potential as modest: to provide a living for its two cofounders and professional pilots, John Barnacle and Ciaran Haughey.
However, one former director, Paul Carty, outlined the major debt and development problems that beset the company after its foundation in 1985. Mr Carty told the Moriarty tribunal that he had resigned as a director in 1992 partly because of his concern at the level of debt.
The company initially operated a small charter service, one of its most notable contracts being with pirate radio station Q 102 for a period in the 1980s. Celtic Helicopters provided the "Eye in the Sky" traffic news for the station.
In 1990 the company decided to expand into the helicopter maintenance business. A 20,000 sq ft building with spacious office accommodation and a modern hangar was built in 1990 to allow Celtic to expand into maintenance and to provide a service to outside private aircraft owners.
However, this business never developed significantly and the cost of building the new premises put the company into serious debt. In 1992 the company sought outside investment of £500,000 to £600,000 and asked Mr Haughey's financial manager, Des Traynor, to help raise this. Mr Traynor raised £290,329 from five individuals (see main report).
By 1994 the company had suffered further substantial losses and the hangar was put on the market, as it was, Celtic said at the time, "surplus to the company's requirements". The company said that air charter had become the principal contributor to its revenue and that the company was now going to concentrate on that "profitable area". Celtic's charter-based business is based on small craft operating from Dublin.
Controversy arose in 1991 when confidential business material related to Irish Helicopters, Celtic's commercial rival, was given to Celtic Helicopters. The information was in a report prepared by Mr Dermot Desmond's firm, NCB. However, NCB said, and Irish Helicopters' parent company Aer Lingus accepted, that the leak was done without Mr Desmond's knowledge and had no political motive.
The McCracken tribunal discovered that loans had been advanced to Celtic Helicopters' secured by funds held in the Ansbacher deposits for Mr Haughey's benefit. The authorised officer appointed by the Tanaiste, Ms Harney, to examine Celtic Helicopters has found further links between the company and the Ansbacher deposits.
In 1996 net assets of the company were £36,862. The Irish Times unsuccessfully sought from the company this week an account of its present trading activity and financial state.
