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andMK Airlines forced from the sky
09-Apr-2010
MK Airlines has suspended all flying after the struggling cargo carrier failed to secure
sufficient funding to continue its operations.
The struggling UK-headquartered B747-200 freighter airline only exited administration last June with the promise of new investment. However, this appears to have failed to materialise and the future is now in extreme doubt.
Air Cargo News believes that the UK Civil Aviation Authority (CAA) visted MK's headquarters last week after learning that the airline was under financial stress. It is believed that staff salaries had been unpaid for several months and fuel and handling bills were also in arrears.
The airline is believed to have had until today to find new investment, but failed – the CAA having no alternative but to suspend the airline's operating certificate.
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MK Airlines to suspend operations due to financial problems.
Will Waters | vr, 9 apr 2010
Freighter operator tells customers it can no longer maintain necessary service and safety levels
MK Airlines is to suspend operations because of financial problems.
Forwarding sources said the freighter operator had told customers it had become impossible with its current financial resources to maintain the service and safety levels expected, and was set to announce the suspension of flights later today.
IFW reported last month that the airline, which operates B747 freighters between Europe, Africa, Asia and the Middle East, was in financial difficulty and that some MK staff had been told not to expect wages to be paid for seven or eight weeks due to cash-flow problems.
MK had confirmed at the time that there has been a delay to some payments to staff, but had been optimistic that the recent revival in air freight demand and rates would ease its financial challenges.
Airline sources said a team from the UK Civil Aviation Authority visited MK Airlines last week, in order to check whether MK had adequate resources to continue to guarantee safe flight operations.
The CAA team was expected to return to MK’s UK headquarters today, in order to verify that certain changes had been forthcoming, including the payment of flight crew and other staff wages, and outstanding debts to fuel and handling providers and air traffic control authorities.
Several airline sources said they expected the CAA to rescind MK’s air operator’s certificate (AOC) today, although a CAA spokesman told IFW that MK was still in possession of its AOC as of 16.00 today.
MK briefly ceased operating in mid-2008, when problems raising new funding forced the airline into administration, although it resumed flight operations in June 2008 after the company’s joint administrators secured an initial funding arrangement with Transatlantic Aviation Limited (TAA), part of The Belfairs Management Group of Companies.
It eventually emerged from administration in last June, but has been operating with a reduced fleet of just two to three freighters since that time – compared with up to eight B747s three years ago.
Sources said promised additional funding from its new owners had not been forthcoming.