Government 'tried to aid airline'

The firm blamed rising fuel prices and a fall in passenger numbers

The Isle of Man Government did all it could to secure the future of EuroManx before its collapse, chief minister Tony Brown told the House of Keys.

The airline went into receivership on Friday, blaming rising fuel costs and falling passenger numbers.

But Mr Brown revealed "considerable efforts" had gone into helping the airline as far back as October 2007.

And he attacked parent firm Quest for "not having the courtesy" to tell him their intention to cease trading.

Mr Brown told the House of Keys that the government was informed in October that EuroManx was losing money.

By November, the airline owed the government about £850,000 in airport fees, Air Passenger Duty (APD), income tax and national insurance.

I am satisfied that government has done all that it could have been expected of it in its endeavours to try to secure the future of EuroManx Tony Brown

The chief minister said the government extended its credit facilities to the airline in November, December and January, whilst it repaid some invoices.

Mr Brown revealed that airlines Aer Arran and Flybe both decided against potential takeovers of EuroManx.

The airline was put into liquidation on 9 May - the day after Flybe informed parent company Quest it would not be making the purchase.

EuroManx flew its last Dash8 aircraft out of Ronaldsway Airport at 0623 BST, but did not inform the airport it had ceased operations until two minutes after take-off.

Mr Brown said: "There is no doubt this was a deliberate act by the owners of EuroManx so as to ensure that the airport authority could not arrest the EuroManx aircraft as security against outstanding debt.

"I am satisfied that government has done all that it could have been expected of it in its endevours to try to secure the future of EuroManx."