freight carrier DAS Air Cargo has entered administration and stopped flying
after a European ban on its services and a subsequent legal battle, coupled
with high fuel prices, caused a dramatic downturn in its financial position.
Air Cargo was established in 1983 to provide airline and ancillary services to
its air operator’s certificate holder, Kampala-based Dairo Air Services. At its peak DAS Air operated six
aircraft on freight services between Europe and Africa. Last year it generated over $200
million in revenues.
following a dramatic decline in DAS Air’s financial performance, its management
filed for administration on 17 September. Menzies Corporate Restructuring says two of its
executives, Andrew Duncan and Andrew Stoneman, have been appointed as joint administrators.
says: “A combination of events including fuel prices reaching an all-time high
and an unexpected legal case – duly won – by DAS Air against a sudden ban
imposed on them for operating within the European Union, saw their customer
base drop and their financial performance decline dramatically.”
says that, by the time the ban was lifted, almost irreparable damage had been
done to the business: “The management came to the decision that the company
says the leased aircraft have been returned, while the carrier’s own McDonnell
Douglas DC-10-30 freighter has
been taken back to the UK.
Although DAS Air is no longer flying, Duncan
says its staff and operation have been retained in case a refinancing package
Air has a strong pedigree and has enjoyed a market leading position for many
years. The unfortunate events of last year, particularly the completely
unforeseen EU ban, have, however, taken their toll,” he says.
EU ban has been lifted and the company is in good shape for reclaiming its position
as a worldwide cargo carrier. We are working closely with the directors on a
plan for taking the business forward and hope to sell the business as a going
concern, thereby saving jobs and minimising disruption to the company’s
adds that within the next month it should become clear whether anyone is
interested in acquiring DAS Air as a going concern.
Air’s owners, Jo and Daisy Roy, are seeking to refinance the carrier, while
some of the airline’s UK-based management have expressed an interest in
acquiring the business and assets out of administration.
is unclear whether Dairo
Air Services is still operational, given the developments at its
capacity-provider. Duncan says: “DAS did
provide all of the aircraft for Dairo.
Dairo isn’t operating at
the moment, as far as I am aware, because it has no aircraft to charter out.”