The survival of EU Jetops Ltd, the Shannon-based low fares airline which ceased trading last month, would secure the jobs of 44 core staff, the High Court was told yesterday.

Mr Justice Frank Clarke, who appointed accountant John McStay as examiner in a bid to rescue the company, also heard that the airline's customers who had prepaid fares by credit card would be refunded €6.2 million.

Gary McCarthy, counsel for the company, said cash customers would get no refunds.

He said that money for fares paid by credit cards was held by AIB Merchant Services and paid out to the airline only two days after the flight contract had been completed.

He said that AIB Merchant Services held €6.2 million for flights that would not now operate and was seeking confirmation from the examiner in order to refund customers.

Mr McCarthy told the court the only option now available to the airline was to relocate all of its operations from Kent International Airport back to Shannon, scale back staff and recommence its business, leasing aeroplanes to other operators.

He said one of the company's critical assets was its Airline Operating Certificate (AOC) and it was planned to seek, within a short period, a new investor who owns aircraft and needs an Irish AOC licence.

He said the company commenced business in May 2003, operating as a provider of aircraft on a "wet-lease" basis, whereby a company provided aeroplanes, pilots, crew, engineers, technical know-how, maintenance, insurance and the operating licence.

It had changed to providing airlines with aircraft only, leasing aircraft to Air France and Brit Air among others.

In 2003, the company suffered losses of €1.9 million and, after a review of its business, it had been decided to operate low-fare scheduled services between Shannon and Kent International Airport, previously a military aerodrome which had changed to private ownership in 1998.

EU Jetops appointed NM Rothschild & Sons to seek capital funding of about €21.5 million by way of private placement to cover set-up and route development costs.

Venture capitalists were not prepared to invest in low-cost start-up airlines and all attempts to raise the money had been unsuccessful. Mr McCarthy said PlaneStation Plc, through its subsidiary, London Manston, owned Kent International Airport.

In 2004, PlaneStation had a market capitalisation of about £100 million (€144 million) and wished to promote Kent International. In exchange for a 30 per cent shareholding in EU Jetops, it provided €4 million to fund initial start-up costs for scheduled flights between Shannon and Kent.

In September 2004, PlaneStation purchased the entire share capital of EU Jetops from Patrick Joseph (PJ) McGoldrick, Cullenagh House, Ballina, Killaloe, Co Clare, his family and other minor shareholders in exchange for share warrants in PlaneStation, together with a commitment by PlaneStation to lend the company €18.5 million by way of subordinated loan.

EU Jetops commenced daily flights from Kent International to Dublin, Belfast, Newcastle, Manchester, Amsterdam, and three flights weekly to Prague, Nice, Gerona, Alacante, Malaga, Faro, Geneva and Salzburg. From Shannon it offered a weekend service to Faro, Malaga, Mercier, Ibiza and Geneva.

Demand from Kent International had proved disappointing, with average passenger loads of only 50 per cent due to what the company saw as a temporarily depressed market for low-cost carriers.

PlaneStation, having lent approximately £20 million to EU Jetops, was experiencing its own financial difficulties and refused an additional £12 million loan to EU Jetops to facilitate its operation from May 2005 to April 2006.

It had continued to fund EU Jetops on a weekly basis and, on a confidential basis, had sought a purchaser for the airline.

On July 25th last, PlaneStation's bank told them that it was no longer able to support additional facilities and the London Stock Exchange announced a suspension of trading in PlaneStation shares. PlaneStation had been placed in administration due to its insolvency, leaving EU Jetops without funds and similarly unable to trade.

It had ceased operations the following day. An administrator had been appointed to London Manston plc, owner of Kent International Airport and a 100 per cent subsidiary of PlaneStation, and Kent International was closed.

Mr McGoldrick and Robert Stevens, of Chiltenhurst, Eden Bridge, Kent, directors of EU Jetops, petitioned the High Court in Dublin on July 27th for the appointment of an examiner.

Mr Justice Clarke admitted EU Jetops to examinership.