The low-cost carrier EUjet, which began scheduled operations earlier this month, has been bought out by the British airport operator Planestation Group plc, writes Emmet Oliver.
Planestation Group operates airports in Europe and North America. The British group already held a 30 per cent stake in Shannon-based EUjet before yesterday's announcement. It bought that stake in May for almost €3 million.
The companies refused to disclose the purchase price for the remainder of the equity.
It is understood that EUjet's shareholders stand to gain 54.4 million Planestation share options, which can be exercised between May 2007 and May 2010 at 4.7p per share, subject to various performance conditions.
The main beneficiaries will be EUjet's chief executive, Mr PJ McGoldrick, and his son Stuart, who is deputy chief executive of the low-cost carrier.
As part of the deal, EUjet's shareholders must also contribute €875,000 of immediate working capital to the airline. A statement said that these funds were needed to establish further routes and to introduce additional aircraft.
As part of the deal, EUjet's Mr PJ McGoldrick will join the board of Planestation Group plc.
"The deal further consolidates the position of the Shannon-based airline, which now employs over 250 people," a statement said.
Mr McGoldrick said the idea behind the deal was to bring an airline and an airport operator together.
"To a great extent, low-cost airlines rely on discounted airport deals, which unfortunately expire after a number of years.
"At some airports, the law requires that airport operators apply the same changing rate to all operators, which inevitably results in increased charges to the low-cost operator," said Mr McGoldrick.
EUjet was set up in 2002 and, since May 2003, it has been operating Fokker 100 aircraft on wet lease contracts and on charter operations in various European countries.
The airline began scheduled flights from Kent International Airport on September 1st and scheduled flights from Shannon on September 18th.
The company will phase out its existing wet lease and charter business to concentrate on its scheduled service operations. The airline operates flights from Shannon to Malaga, Murcia, Faro and Geneva.
Mr McGoldrick and his son established EUjet initially to provide aircraft and crew to operate scheduled services for Air France; Lufthansa's low-cost airline, Germanwings; and Italy's biggest low-cost carrier, Volare.
PJ McGoldrick (64) has a long association with several Irish and foreign aviation businesses. He freely admits to being "addicted" to the aviation sector.
After several roles in the sector during the 1960s and 1970s at Shannon Air and TransMeridian Airlines, he established HeavyLift Cargo Airlines in 1980 and ran the operation until 1987 when he sold his interest in the business.
He then took over as chief executive of Ryanair, staying for three years, although he was never a shareholder.
In 1991 he started another airline, TransAer, which operated for almost 10 years but which went into liquidation with liabilities of more than €30 million and the loss of 450 jobs. Mr McGoldrick recently commented: "I have all the scars of the aviation business because of my long experience in it."
