Aer Arann suffers financial problems; examiner appointed by High Court

Ireland's High Court has appointed an interim examiner to Aer Arann, after learning that the Irish regional airline is struggling to service debt obligations as a result of sharp falls in traffic and the disruption and costs of the Apr-2010 ash cloud crisis (Breaking News/RTE News/Irish Times, 26-Aug-2010). The decision gives Aer Arann court protection from its creditors and allows the examiner to implement a restructuring plan. Michael McAteer of Grant Thornton has been appointed as interim examiner to the airline after it was announced that an independent accountant's report revealed the airline has a "reasonable prospect" of survival if certain steps are taken. Aer Arann advised that all services will continue to operate as normal, with no impact on customer travel or bookings. Aer Arann has incurred an estimated EUR188.5 million in losses over the past two-and-a-half years, which the airline stated "led to a deficit in shareholder funding of approximately EUR13 million at the end of July this year".