McEvaddy canvassed TDs on jet noise plan

Mr McEvaddy told the High Court he canvassed Government and Fine Gael support earlier this year to block an EU regulation which…

Mr McEvaddy told the High Court he canvassed Government and Fine Gael support earlier this year to block an EU regulation which would curtail aero-engine noise and jeopardise the future of his aviation companies.

In a successful application temporarily restraining the Irish Aviation Authority from introducing the regulation, he told a High Court judge three weeks ago that his company's bank, Anglo Irish Bank, had threatened to withdraw promised massive financial support for new projects.

Mr McEvaddy said if the regulation came into force one of his companies would have to write off a £26.8 million investment. The bank funding a further £55.8 million investment had said this would not proceed unless the regulation was changed or annulled.

He told the court he had written to the Minister for Public Enterprise, Ms O'Rourke, on February 8th seeking a meeting with her about the Government's attitude to the regulation.

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On February 25th, at his request, Fine Gael's Mr Ivan Yates TD had asked a number of questions of the Minister, for written reply, regarding the proposed EU legislation. In March one of his companies, Omega Aviation Services Ltd, had written to the Minister expressing opposition to the proposed regulation.

He also told the High Court that on May 19th Mr Yates had asked questions of Ms O'Rourke in the Dail about the application of the regulation and the Government's attitude towards it.

Mr McEvaddy, whose address was given as Collinstown Cross, Dublin Airport, is technical manager of Omega Air Ltd and a director of its sister companies, Aero Engines Ireland Ltd and Omega Aviation Services Ltd.

He said in a sworn affidavit that Omega Air Ltd had been incorporated in 1984 in the Isle of Man and was managed in Sark, the Channel Islands. Its technical programmes were operated from offices at San Antonio, Texas; Collinstown Cross, Dublin Airport; and Manston International Airport, Kent, England. Its two associated companies were incorporated in Ireland with offices at Collinstown Cross and Knockbeg Point, Shannon Airport.

He said the three companies also included Seven Q Seven Inc (7Q7), which is jointly owned by the owners of Omega and Swearingen Aircraft Inc, a corporation established in the US. Seven Q Seven had been incorporated under Texas law for re-engining Boeing 707 jets owned by Omega. Its two sister companies were engaged in the sale, leasing and modification of aircraft, in particular Boeing 707s.

He said EU Regulation 925/1999 purported to lay down rules to prevent deterioration in the EU noise impact of recertificated civil, subsonic jets while limiting other environmental damage.

He said the regulation sought to impose restrictions on the registration and operation within the EU of "recertificated civil subsonic jet aeroplanes", aircraft whose lives are vastly extended by being updated to modern standards. These are then sold or leased to Third World countries or charter companies operating within the EU. The new regulation would affect Boeing 707s.

The court was told Mr McEvaddy's companies were unable to meet deadlines laid down by the regulation which would come into effect early next year. As a result, Omega would be prevented from operating its aircraft in the EU from May 2000.

Mr McEvaddy said the regulation would reduce immediately the value of its Boeing 707 fleet by 30 per cent and cause Omega to write off a $36 million (£26.8 million) investment in its aircraft update programme.

He said Anglo Irish Bank had provided finance for the programme and had agreed to provide further financing for the reengining of Boeing 707s. The bank was to have provided $75 million (£55.8 million) to enable Omega to re-engine an initial five of its jets.

As a consequence of the perceived fall in value of Omega's fleet from Regulation 925/1999, Anglo Irish Bank had indicated it was not prepared to satisfy its informal undertakings until the regulation had been either annulled or amended.

Mr McEvaddy said all three companies would sustain serious loss. As well as retaining a lobby group specialising in transport questions to press the case in Brussels with MEPs, Commission officials and representatives of member-states, he had approached Ms O'Rourke and Mr Yates.

He had instructed legal representatives in England to prepare proceedings challenging the legality of those provisions of the regulation as they affected Omega's operations in the UK and was making a similar application in the Irish courts.

Mr McEvaddy's companies were granted leave to legally challenge the Irish Aviation Authority's introduction of the regulation and an interim injunction rest raining it from applying the provisions of the legislation until further determination of the court.