A LIQUIDATOR has been appointed to grounded charter airline Futura Gael after the High Court was told yesterday it is believed to have no reasonable prospect of survival.

The airline was placed under court protection some months ago while its examiner, Kieran Wallace, made efforts to secure additional investment for it.

Yesterday, Mr Justice Peter Kelly was told by Rossa Fanning, for Mr Wallace, that proposed investors had informed the examiner on Thursday they were withdrawing their investment offer with immediate effect.

In those circumstances, Mr Wallace was now of the view that the company had no reasonable prospect of survival, counsel said.

Mr Justice Kelly granted the examiner's application for an order winding up the company and he appointed Mr Wallace as liquidator.

Futura Gael, based in Swords, Dublin, had ceased operations on September 8th last after its Spanish parent, Futura, ran into trouble because of the then high price of oil.

About 70 people were laid off temporarily when Futura ceased operations and tour operators were forced to find alternative return flights for Irish holidaymakers stranded as a result.

Futura Gael is the Irish arm of the Majorca-based Futura Group, which operated 38 aircraft and had revenues of €335 million. Based in Spain, Futura was set up by Aer Lingus in 1990 and was headed by Willie Walsh, who now leads British Airways. Aer Lingus sold an 80 per cent stake to Futura's then management for an estimated €28 million in 2002.

SWEDISH GIANT Ikea has seen 2.3 million shoppers pass through the doors of its Belfast store during its first year of operation - and a significant number are travelling from the Republic.

The furniture outlet regularly attracts in the region of 40,000 customers a week from across the island. Paul Reid, store manager in Belfast, says a significant number of these visitors are euro-wielding shoppers from the Republic, helped by the growing strength of the euro against sterling.

Ikea initially only accepted payment for goods in sterling - a decision it quickly reversed when it saw how popular the brand was with cross-Border shoppers.

Mr Reid believes the decline of sterling against the euro and the recent cut in UK VAT rates has served to make Ikea even more attractive to southern-based shoppers.

He conservatively estimates that between Monday and Friday, up to 10 per cent of Ikea's daily customers are from the Republic. But on a weekend, he says, more than 20 per cent of customers who visit the store come from the South.

"What we have seen is that people are prepared to travel to Ikea Belfast from across Ireland and Northern Ireland. If you look at our car park you will see car registrations from Kerry and Cork - they come from all over and we deliver all over the island," Mr Reid said.

He says the store prides itself on being euro-friendly.

"We offer a competitive exchange rate - we try to be as accurate as possible. It is currently 85 pence to the euro and we accept Laser so we are very customer-focused," Mr Reid said.

He says financially Ikea has had a very "positive" first year.

The Belfast store manager believes it has been sheltered from any potential local fallout from the global credit crunch because of the weekly volume of cross-Border shoppers.

Mr Reid hopes this trend is set to last.

"The continuing devaluation of the pound is driving more southern shoppers north and it is not just Ikea who is benefiting. Retailers like Marks Spencer and Sainsbury are doing very well.

"We also know from talking to our customers from the South that some of them when they come up, they make a weekend of it in Belfast - so the wider economy is benefiting, which is great," Mr Reid added.

He does not envisage any immediate competition from Ikea's new Dublin store because Mr Reid says there is no official opening date for it yet. The store will be located just off the Ballymun Road.

In the meantime, Ikea Belfast is more than happy to provide detailed directions on its website from Dublin to its store in east Belfast.

According to the Belfast Visitor and Convention Bureau, the entire city is enjoying a massive boost because of the volume of cross-Border shoppers it is now attracting.

Anne McMullan, director of communications with the visitor and convention bureau, says it has invested heavily in wooing the euro shoppers and the evidence is on the streets to see.

"This is a wonderful opportunity for us. The Republic of Ireland has always been one of our key markets but the euro has changed the direction in which people shop.

"It used to be people from the North going down to shop in the South but now, as a result of the exchange rate and the reduction in VAT, we are seeing a surge in the visitors from the Republic of Ireland," she said.