Some 16,000 creditors of insolvent airline Citywing — many of them people with pre-booked flights to and from the Isle of Man for the TT, Southern 100 and Manx Grand Prix race events — have been told that its liabilities exceed cash in hand and assets.
A formal creditors meeting on 24 March was informed that the company, which went into liquidation two weeks earlier, had more than £750,000 in the bank. But, even after its assets have been sold, there will still be a theoretical shortfall of at least £440,000 against debts of £1.8m. In fact, the gap is likely to be much larger once liquidators’ fees and administration costs are included.
Eastern Airways has now taken over Citywing’s Belfast, Newcastle and Glasgow routes to the Island and is offering discounted fares for an initial period. The Blackpool and Gloucester Citywing connections haven’t been covered yet.