CityJet (WX, Dublin International) has announced the sale and leaseback of seven ARJ-85s with its main lessor, the UK-based Falko Regional Aircraft Ltd, a key aspect of a refinancing programme aimed at funding its restructuring and growth strategy.
The Dublin International-based carrier said in a statement that a restructuring programme was critical to its plans to evolve into a 'significant' independent European regional airline after its divestiture from previous owner, Air France (AF, Paris CDG), left it with infrastructure deemed 'inappropriate' for its requirements.
“CityJet has been through challenging times since its separation from Air France. The carrier’s independence, coupled with the sale of loss-making VLM (1992) (Antwerp), enables CityJet to develop its niche regional European business," Peter Oncken, CityJet Chairman and CEO of Intro Aviation, said. "I have been impressed by the determination and resilience of CityJet’s management and staff and their focus on the future.”
The carrier says its restructuring programme, which commenced during the autumn, will deliver a sustainable and competitive cost base and corporate infrastructure.
CEO Christine Ourmieres told the Irish Independent that her airline will break even next year and be profitable in 2016 after posting a pre-exceptional EUR23.1million (USD26.8million) loss last year.
Among the more pressing issues that have to be resolved are a renewal plan for the carrier's fleet of ten Fokker 50s and sixteen ARJ-85s. Given its complexity, Ourmieres said a decision will likely only come in summer 2016.
