Provisional liquidators appointed to Dublin-registered airline hit by Iran war fuel hikes

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The High Court has appointed joint provisional liquidators to a Dublin-registered charter airline which has run into financial difficulties due to the Iran war and the rise in the…

The High Court has appointed joint provisional liquidators to a Dublin-registered charter airline which has run into financial difficulties due to the Iran war and the rise in the price of fuel.

Fly4 Airlines Green Ltd, with registered office at Dublin Airport, was set up just over three years ago in August 2023 as a joint venture between Polish airline Enter Air and TUI B, part of the German tourism and travel group TUI.

On Tuesday, Bernard Dunleavy, counsel for Fly4 with Barry Mansfield, said the board had decided to apply to appoint provisional liquidators in an effort to deal with an insolvency situation which will arise at the end of the month and in a situation where valuable leased aircraft are located around Europe and need to be repatriated.

Judge Brian Cregan said he was satisfied to appoint Mark Degnan and Brendan O’Reilly of Interpath as joint provisional liquidators.

Douglas Fay, Fly4 chief financial officer and director, said in written evidence that the appointment of the provisional liquidators is necessary because the company considers its assets and property are exposed to immediate and substantial risk.

It has four Boeing 737-800s, all under lease arrangements and located in Turkey, Germany and Belgium.

Fay said the lease provisions are significant because an insolvency event may trigger rights in favour of the relevant lessors to repossess the aircraft or require their return. The company may also remain exposed to maintenance, return-condition and indemnity liabilities.

Fly4 began trading in about August 2023 and in 2024 its financial performance included significant start-up costs of about €8 million, which consumed the capital provided by Enter Air and TUI.

Utilisation of aircraft was low during the winter of 2023/24 due to a lack of lead time and name recognition for a new brand, Fay said. This resulted in losses of some €16 million for 2024.

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