START-up budget carrier EUjet is being bought out a
month after launching its first flight.
Planestation, the company that owns EUjet’s home airport
Kent International, has raised £5.1 million through a share
placing to provide working capital to the airline.
It has also agreed to acquire the remaining shares of the
airline, of which it currently owns 30%, for £2.5 million by
2007.
EUjet is Kent International’s only commercial airline
following a multi-million pound revamp and Planestation’s
directors are keen to ensure it remains in business.
It launched on September 1, flying to 12 European destinations.
Planestation and EUjet management are currently reviewing the
airline’s business plan, which may see the company reduce its
scheduled presence and increase charter services.
A Planestation spokeswoman said: “The company feels it should
take a more hands-on approach in the running of the airline and
help dictate its future strategy.”
As part of the move EUjet’s founder and chief executive PJ
McGoldrick will join Planestation’s board.
McGoldrick said: “For an operator to have long-term stability
requires long-term arrangements with airports, particularly at the
airline’s main base of operation.
“The best way of achieving this is for the airline and airport
operator to come together to offer low-cost transport to the
market.”
EUjet’s launch raised eyebrows in the low-cost world
because it operates small regional jets rather than the traditional
Boeing 737 or Airbus A319, and it launched from Kent International,
a small airport with limited access facilities.
Meanwhile, Planestation has warned income from Kent
International and its other airports is not sufficient to meet its
operating costs.
It has reduced head office costs to £4.5 million from
£7.8 million last year and the costs of running the airports
to £6.6 million from £11.1 million.