MK poised to exit administration

MK AIRLINES will shortly exit administration after a year in which it has sought protection from its creditors, whilst it restructures its business.

Chief executive officer, Mike Kruger (right), told Air Cargo News that “we are in the process of concluding the final arrangements to exit administration. By the summer we expect to be out of administration”. Kruger says that the Company Voluntary Arrangement (CVA) had been agreed in December, full due diligence had been performed on the company and final arrangements with creditors were being made. “The end is in sight, we would all have liked it to happen quicker.”

Kruger said he would be unable to provide further details about the company structure and shareholders until it had exited administration.

Kruger did, however, admit, like other airlines, he has had to take capacity out in response to falling demand. “We have two aircraft not flying at the moment and have begun a storge programme”.

One of the 747-200Fs is now in six month storage at Kemble, UK, and Kruger says that market demand will dictate whether the aircraft is returned to service or  is scrapped or sold.

For the future Kruger says that the airline will consider new acquisition of aircraft once it has exited administration,  “the state of the market, capital and fuel costs”, will dictate.

“It is difficult to judge the length and cycle of the recession, B747-400Fs, MD-11Fs and even 747-8Fs could be possible. It is a conundrum.” Kruger said that converting passenger B767s owned by the shareholding company could also be an option.

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