BusinessBusiness RecoveryScotland’s biggest airline calls in PwC administrators

Scotland's biggest airline calls in PwC administrators

Bruce Cartwright, Graham Frost and Ian Oakley-Smith wind up Globespan, which was unable to secure third party funding

Scotland’s biggest airliner, Flyglobespan, called in administrators from
PricewaterhouseCoopers when the company collapsed last night.

Bruce Cartwright, Graham Frost and Ian Oakley-Smith from PwC have been
appointed administrators to Scottish travel firm Globespan Group and Alba Ground
Handling on 16 December. The airline arm, Flyglobespan was placed in
administration today.

The administrators announced yesterday that they were unable to continue
trading the companies and therefore all flights would be cancelled and aircraft
grounded yesterday evening.

Bruce Cartwright, joint administrator and head of business recovery services
at PwC Scotland, said: “Despite difficult trading conditions, the company has
successfully implemented a number of steps to refine operations and focus on
core profitable business.”

“Unfortunately a lack of confidence in the sector following the demise of
other airlines resulted in a reduction of liquidity to fund the ongoing
operations.”

“The directors have sought to overcome this lack of liquidity by seeking
additional funding from a third party in recent weeks but this has ultimately
been unsuccessful,” he added.

Earlier this year Flyglobespan unveiled an operating profit of £1.2m, this
was a great improvement on the £19m loss it announced the previous year,
The
Daily Record
reported.

PwC administrators announced it is highly likely approximately all 800 staff
will be made redundant, although a small number will be retained to help wind up
the company.

Ryanair
is providing stranded Flyglobespan customers flights one way for £89 from
various destinations around Europe.

Further reading:

Borders
staff could lose jobs on Christmas Eve

Amusement
arcades group enters administration

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