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Wed 31 Oct 2007 12:45 PM

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DAS Air begins administration process

DAS Air Limited has appointed Andrew Duncan and Andrew Stoneman, partners from Menzies Corporate Restructuring, as joint administrators following the airline's recent financial woes.

DAS Air Limited has appointed Andrew Duncan and Andrew Stoneman, partners from Menzies Corporate Restructuring, as joint administrators following the airline's recent financial woes.

Established in 1983 to provide airline and ancillary services to Dairo Air Services in Africa, DAS Air received a major blow through a legal case against a sudden operational ban in the European Union. DAS Air duly won the case but saw their customer base drop and financial performance decline dramatically.

"DAS Air has a strong pedigree and has enjoyed a market leading position for many years. The unfortunate events of last year, particularly the completely unforeseen EU ban, have, however, taken their toll," said Andrew Duncan, partner, Menzies Corporate Restructuring.

"The EU ban has been lifted and the company is in good shape for reclaiming its position as a worldwide cargo carrier," he added.

At its peak in 2006, DAS Air was enjoying annual revenues in excess of US$200 million. Just last month the company operated a relief charter flight to help those affected by the floods in Sudan, yet a combination of the court case and fluctuating fuel prices plummeted the airline into administration.

"We are working closely with the directors on a plan for taking the business forward and hope to sell the business as a going concern, thereby saving jobs and minimising disruption to the company's customer base," concluded Duncan.

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