Flyglobespan chief rebuffs failure speculation

London
Source:
This story is sourced from Pro
See more Pro news »

Flyglobespan chairman Tom Dalrymple has rebuffed suggestion that the Scottish carrier could be the next carrier to fail, insisting it has robust financial foundations and is on track to deliver profits this year.

In a letter to the media, Dalrymple strikes out at the "whispering campaign of negativity" surrounding Flyglobespan. Speculation over the airline's future has been fuelled by Irish gambling website PaddyPower, which has picked it as 6:4 favourite as the next carrier to enter administration and cease operating.

Dalrymple counters the rumours, saying: "The company and the airline are extremely well-positioned to see through the well documented problems facing the industry at present."

He identifies debt as the "common denominator" in the recent string of high-profile airline casualties, such as UK carrier XL Airways.

"Flyglobespan has no such problems. We have no debt and in addition have substantial cash assets, built up over 30 years over successful trading as the Globespan Group," he says.

Dalrymple says Flyglobespan has just enjoyed a record summer with high load factors and considerably increased yields. He adds that forward bookings are strong and, for the winter season, the airline has leased out a number of its aircraft to maximise its asset use.

"These various leases add-up to multi-million revenue earners for the airline at a time when the industry generally incurs loses," says the Flyglobespan chief.

Next year Flyglobespan is planning to expand its services from Aberdeen, Edinburgh and Glasgow.

Dalrymple says: "I am not denying it has been a difficult time for the airline industry. The soaring price of airline fuel has led to some rapid re-evaluation of business plans but, despite these difficulties and a general economic slowdown, we have performed well and put last year's problems firmly behind us.

"After last year's difficulties we will be back in profit this year - and very well positioned for the future."