[Article] Jetmagic suspends operations

Victor

http://www.rte.ie/news/2004/0128/jetmagic.html

Cork-based airline suspends operations
January 28, 2004

(22:57) The Cork-based regional airline, Jetmagic, has annnounced the suspension of its operations with immediate effect.

In a statement this evening the company said that Jetmagic had not proved to be a viable operation, with expected passenger demand not materialising.

An extraordinary general meeting of shareholders is to be convened to consider winding up the company.

The board had been seeking additional investors but took the decision tonight when none was forthcoming.

din0saur

Aer Lingus have said they will fly stranded passengers for 50,- per zone plus taxes..

Victor

How nice of Aer Lingus, seeing as it was them who put Jetmagic out of business (AL set up new competing routes to most of their destinations).

Parallel thread http://www.boards.ie/vbulletin/showthread.php?s=&threadid=138033

http://www.rte.ie/news/2004/0129/airline.html

400 stranded after Jetmagic collapses
January 29, 2004

(09:52) About 400 airline passengers have been left stranded after the collapse of the Cork-based carrier Jetmagic.

Three hundred passengers who flew with the airline to Britain, France, Italy and Spain and another 100 who flew into Cork will all have to make their own way home.

Jetmagic suspended operations last night after losing more than €11m in the nine months since it was launched. One hundred people will lose their jobs.

Speaking on RTÉ Radio, the airline's chief executive, Barry Perrott, said that yesterday Jetmagic's last investor dropped out and the board had to take the decision to stop trading.

Mr Perrott said the airline had not got the amount of business travelers it had expected.

Mr Perrott said it was a competitive market, and Jetmagic could not win traffic away from the bigger carriers.

Jetmagic has set up helpline numbers for people who had booked with the airline: 1800 301 060, or outside the Republic 00 353 21 4518915. Members of the public trying to contact the helpline may experience some delays in getting through due to the volume of calls and are requested to continue trying.

http://home.eircom.net/content/unison/national/2433569?view=Eircomnet

Airline collapse leaves 100 jobless
From:The Irish Independent
Thursday, 29th January, 2004
Ralph Riegel

FLEDGLING Irish airline, Jetmagic, last night ceased operations after financial difficulties forced the collapse of the carrier.

More than 100 staff are now set to lose their jobs, while Cork Airport will lose more than 150,000 passengers projected to be handled by Jetmagic this year.

The Cork-based carrier - which was founded only last April - suspended its flight operations last night, after issuing a terse statement which blamed disappointing passengers numbers, poor business bookings and cut-throat competition on its core routes for the failure of the operation.

Following a board of directors meeting last night, it was agreed to suspend operations and direct that an Emergency General Meeting be held at which Jetmagic will be formally wound up.

In a statement, Jetmagic said: "Expected passenger demand did not materialise, especially in terms of business travel.

"In the case of a number of routes including Brussels, Rome and Milan, the company had already announced that these routes were not going to continue."

The carrier was launched with fanfare in April and promised to pioneer a new, high-quality, regional-based service to compete against the budget airlines.

Victor

http://home.eircom.net/content/irelandcom/breaking/2434830?view=Eircomnet

Tighter controls sought after Jetmagic failure
From:ireland.com
Thursday, 29th January, 2004

The collapse of the Jetmagic airline and the stranding of up to 400 people has lead to calls for tighter controls to protect the rights of passengers.

The Labour Party's transport spokeswoman, Ms Roisin Shortall, called on the Minister for Transport, Mr Brennan, to review licensing arrangements for airlines to avoid passengers being stranded in the future.

"Why it is necessary for travel agents to be bonded to ensure holidaymakers can return home in the event of the company folding, but not airlines?" she asked.

"Tighter guidelines should be in place to make sure a company like this and the routes it operates are viable before it opens to ensure that staff and the travelling public is not left high and dry."

Green Party TD for Cork South Central, Mr Dan Boyle said the closure will have "huge ramifications for air transport and access to the Cork area . . . questions have to be asked as to how this failure occurred."

He also condemned "predatory behaviour" by Aer Lingus in matching Jetmagic routes.

"Mr Brennan has to be challenged on the extent to which real competition exists in air transport, and how and why airports like Cork are being hindered in reaching their true potential," Mr Boyle said.

The Irish Travel Agents Association (ITAA) also asked the minister to push for a pan-European bonding for airlines.

President of the ITAA, Mr Michael Doorley said: "Since airlines are not bonded in the same way that ITAA travel agents and tour operators are, the Jetmagic passengers have no recourse to any body, and have been left in the lurch far from home."

http://www.onbusiness.ie/2004/0129/jetmagic.html

Aer Rianta seizes Jetmagic plane
January 29, 2004

(18:41) Aer Rianta has impounded a jet belonging to the collapsed regional airline, Jetmagic, which folded today after losing more than €11m in just nine months.

More than 100 people, recruited by the airline since its launch last April, have lost their jobs and an estimated 400 passengers who flew with Jetmagic on their outbound journeys have had to make alternative arrangements for their return.

Jetmagic was a regional airline based in Cork, promising direct flights to tourist destinations such as Barcelona and Nice, and business travel to London, Paris and Brussels.

Launched last April, Jetmagic says it enjoyed high passenger loads on holiday routes throughout Europe but described bookings on business routes as 'very disappointing'.

To stem losses, the airline announced that it was to axe flights to Brussels, Rome and Milan while existing shareholders pumped in more money within the past month.

Jetmagic suspended operations last night. It said the airline wasn't viable and a liquidator is likely to be appointed.

Aer Rianta has said it regrets the collapse - that this is a loss for Cork Airport and the for the travelling public in the area.

Aer Lingus said this morning it would accommodate Jetmagic's passengers on a 'space available basis' for €50 per flight. A spokeswopman said passengers are encouraged to go to the nearest airport serviced by Aer Lingus, which operates on most of Jetmagic's routes.

* Jetmagic has set up helpline numbers for people who had booked with the airline. Within the Republic of Ireland the number is freephone 1800-301-060. Callers from outside the Republic should diall +353-21-451-8915.

Victor

http://www.onbusiness.ie/2004/0216/jetmagic.html

Hope for Jetmagic as new investors in talks
February 16, 2004
(09:21)

The chief executive of collapsed Cork based airline Jetmagic has said that new investor interest may revive the airline.

Jetmagic owes about €3.5m to creditors but could be flying again within three months if new interest materialises funding.

Jetmagic ceased trading just three weeks ago leaving 400 of its passengers stranded in Europe and owing nearly €4m to creditors.

The Irish Times reports that Jetmagic chief Barry Perrott said: 'Since we've suspended trading, and technically we have not entered liquidation at the moment - we have suspended operations, there have been several new interests expressed but each of them will take time to work with.'

Perrott said he was hopeful not confident of the company's chances.

dmeehan

in fairness, who is going to risk flying with jetmagic again after they left 400 people stranded across europe?

deRanged

I would actually - just get travel insurance!