Irish airline CityJet lost nearly €39 million last year ahead of its sale by parent company Air France to German operator Intro Aviation, according to the company's latest accounts. The figures also show that it repaid Air France a €40 million debt after the sale had been agreed at the end of last year.
CityJet’s accounts show that turnover fell 16 per cent in 2013 to €220 million from €260 million in 2012.
The company lost €23.5 million before tax last year, which combined with €15.1 million in provisions for once-off charges, a total pre-tax deficit of €38.6 million was recorded.
Its losses were far below the €209 million recorded in 2012, which included a €175 million write-down in the value of its subsidiary, VLM Airlines, which CityJet’s new parent recently sold to its management. CityJet wrote a further €1.3 million off VLM’s value in 2013, but also had to pay €13.7 million in fines to a French court arising out of an ongoing case related to payroll claims.
The company is appealing the ruling to the French supreme court, but had to pay the penalties as an earlier challenge taken in the Court of Appeal of Paris was dismissed, the accounts state.
According to CityJet chief executive Christine Ourmières the airline’s new owner wants the business to be financially independent. Ms Ourmières also said that competition on one of the airline’s key routes, Dublin to London City Airport, is having an impact.
