Galway Airport firm may cease trading as talks break down

THE COMPANY behind Galway Airport may cease trading in the next few days after talks between the airport and its bankers broke down.

It is understood that, as a result, the company cannot meet short-term cash commitments.

The future of the airport was thrown into doubt last October when Aer Arann announced it was withdrawing its flights for the winter. The regional airline was the sole scheduled flight passenger operator at the Carnmore airport.

Most of the airport’s 52-strong workforce were let go as a result of the withdrawal of the Aer Arann service. However, a number of private planes have continued to use the airport.

According to Galway Chamber of Commerce, Bank of Ireland withdrew €1.1 million from the company’s bank account last Friday and set it off against the company’s loans. “On Thursday last, Galway Airport was trading as a going concern and had agreed a clear business plan for its future with its bankers. It had €1.6 million in its bank account with further funds due,” the chamber said in a statement.

A bank spokeswoman said the bank did not comment on individual cases, but at all times acts on a contractually-agreed basis. “The bank works with all businesses which can show a viable business plan,” she added.

Late last year, the chamber commissioned PricewaterhouseCoopers to seek an investor for the airport. It is understood 12 prospective investors or buyers had been identified and were to be approached imminently.

Last May, Minister for Transport Leo Varadkar confirmed the operational subvention funding for the airport would not be extended beyond 2011.