NOW Airlines, the carrier that planned to introduce a
zonal-based fare model to the UK, has called in receivers without operating a
single flight.
The airline announced launch plans at a lavish press
conference at a top London hotel in March last year, but its ambitious
proposals failed to catch the imagination of potential investors.
It had planned to operate a range of European routes
from Luton offering prices based on a zonal system. Zone A fares, for example
from Luton to Manchester, were set at £30 per sector, rising to £60 for Zone E
destinations – Luton to Rome.
A message on the carrier’s website read:
“Following the problems with completing the agreed funding for the Now Airlines
project, the launch has been deferred until further notice. Now Airlines has
been put into receivership.” It said a plan for the restructuring of the group
is being considered.
Now was the brainchild of former chief operating
officer Nick Grimwood, who was also involved with Blue Fox, the business-only
transatlantic airline which also failed to get off the ground.
Lars Welinder was brought in as interim chief
executive and a big name was promised to lead the airline. Welinder said the
airline would be a “second-generation” budget carrier.
First-round funding for the airline came from a
private syndicate as well as £300,000 from the East of England Development
Agency, but the airline failed to attract additional investment.
The collapse follows a spate of recent airline
failures and warnings of more to come from the likes of Ryanair boss Michael
O’Leary. Duo called in the receivers in April, while a number of Irish airlines
have also gone to the wall.
The directors involved with
the airline where unavailable for comment.