European Aviation & Minardi

[Craig]

I spoke to a friend today who has been working for European Aviation. He told me that they had ceased trading and that a lot of their staff (in the region of 700) were owed an average of £5,000 each. He may or may not have suggested that there may or may not have been rumours amongst the staff of a large loan to Minardi F1 immediately prior to the collapse... now I'm sure this is incorrect but, if it wasn't, surely Mr Stoddart would be in very hot water and Minardi would likely be wound up? Has anyone else heard anything? Obviously if it particularly sensitive then don't post it here but PM me!

[Damon]

It was on the local news on wednesday and thursday last week. Stoddy was actually at the hq making his apologies etc. I was actually surprised, given the turn of events, that he managed to get out to Malaysia. I doubt the 700 he made redundent would have been all that impressed.

[Craig]

Indeed. I am surprised that my friend made his way home from his previous assignment with European quite so quickly - he had been in Malaysia... could have been quite an interesting visit to the GP if he and his other colleagues had popped along...

Anyway if anyone can shed any light on this alleged loan I am sure that the ex-staff would like to hear of it.

[MichaelC]

From our beloved local paper, the Ledbury Distorter...

http://www.thisisledbury.co.uk/heref...URY_NEWS0.html

[billkirbywofb]

Does not surprise me. A lot of small airlines have gotten into problems by buying jumbo jets. Desert airport storage in Arizona are filled with them. But it sounds like European is still trying to do what it has done best, flying 737 in regional service

[Teretonga]

"May or may not have been rumours amongst staff"..."about a large loan".. "Now I'm sure this is not true.."

Then why post it? So European Aviation is having cashflow problems. What aviation based industry isn't? Aviation is one of the most economically volatile industries on the planet. It is the norm in the last few years for this sector to experience upheaval. Just hope Stoddy can get it all sorted out. At least he appears to be taking a responsible route, concentrating on his core business(737's) and hoping to sort the rest out in due course.

[Kicking-back]

I don't think there's anything sinister here.

And you can't really go making allegations about loans and whatever without any evidence.

It's just as libellous for you to repeat an untrue allegation than it would be to make it in the first place.

[Rick]

Lots of interesting reading on the main pilots forum -

http://www.pprune.org/forums/showthr...&pagenumber=21

(20 pages before this if you want!)
Must admit I still don't know where Stoddart fits into the European ownership at the moment and how it might effect Minardi.

Doesn't look pretty tho'.

[Andrew Kitson]

Is this the airline side that has gone down? If so, it is the Bournemouth based part that Paul sold off to a consortium of businessmen from the south of England. The other part - spares and servicing is a seperate company which I understand is profitable and based at Ledbury.

[mountainstar]

I thought I remember reading last year in one of the racing mags that paul was divesting himself of the airline side of the business one way or another. It quoted him directly.

[Gaz170]

Originally posted by mountainstar
I thought I remember reading last year in one of the racing mags that paul was divesting himself of the airline side of the business one way or another. It quoted him directly.

Interesting. At the Melbourne GP, he was talking about starting a new budget airline in Australia. :confused:

edit: found a link to a story here

[Adam43]

Perhaps the jet engines weren't cheap enough?

Anyway, obviously we should watch what we say here. Just like in those Tom threads.

Back to topic. They are all separate companies that have been mentioned above so nothing should effect Minardi directly, but I'm sure it'll have some knock on. If only some juicy questions at the next GP.

[Armco Bender]

This story was in papers last week..:


"European Aviation is owned by Paul Stoddart, who also owns the Minardi Formula One team based in Faenza, Italy.

On Thursday Mr Stoddart was back at European's HQ at Bournemouth Airport for urgent talks to save European Aviation and its remaining 40 air charter jobs.

European currently owes between £7 million and £8 million. Creditors - including the Inland Revenue and Customs & Excise - number several hundred.

Mr Stoddart said that he had been in tears when he made his 560 workers redundant: "It was dreadful. They are a fantastically loyal bunch"

You would have to assume that European is the major cash cow for Minardi,and if the companies are interlinked you would expect someone is going to have a go at seizing/arresting the outfit,especially if Inland Revenue and Customs are owed money.....can we expect another Arrows type debacle?,or will Bernie step in again to protect his investment?,going to be interesting anyway when the get back to the European races.

[Teretonga]

But does Bernie have an investnment in Minardi. I understood no money changed hands?
This also provides reasons for Stoddy's insistence that those who made commitments to reduce costs/provide cheaper engines do so. European can't continue to underwrite Minardi.

[hamsmith]

Roll on three car teams!

[mark_l]

Paul Stoddarts plans to start OZJET have hit troubles

http://www.theaustralian.news.com.au...55E643,00.html

[Teretonga]

This story completes the picture. Stoddy did sell the company in Nov 2002 but the final payment was never made and the company has since found itself in the brown stuff (mud?). 'Managemnt consultants were running the company for the new owners-a recipe for disaster if there ever was one.
Stoddy has moved in again to take up the reins as he feels he has a 'moral' duty to the staff (his old staff).
But it's not Stoddy's problem. He didn't cause it. It may impact indirectly on the aviation spares business or Minardi.

[RWC]

Teretonga has it exactly right