MIAMI – On May 28, France’s Bobigny commercial court ordered the dissolution of CityJet’s (WX) French branch, making 80 employees redundant.
The dissolution comes after the Irish carrier lost its Sweden and Finn subsidiaries CityJet Sweden (AB) and Finland CityJet (Oy).
During what has been an unprecedented tough period, WX sees another subsidiary shut down due to its economical difficulties, rising to 180 the total number of employees fired by the airline.
During the previous month, WX saw many partners canceling their wet-lease agreements, including Brussels Airlines (SN), Air Lingus (EI), SAS Scandinavian Airlines (SK), and Hop! (A5) by Air France (AF).
Moreover, as the days pass, the carrier’s debt climbs. As a result, WX announced that it would start a consultation process for reorganizing its Ireland and Britain operations.
This means that an additional 276 employees may have to say goodbye to WX in the following days.
Due to its current position, WX has decided to take part in an Examinership process (Ireland’s Chapter 11 from the U.S.) to assess, if possible, a business plan to restructure the business, protect its assets, and ultimately make the Dublin-based company sustainable in the long term.
Alas, the plan entails the possibility of 700 workers becoming redundant and several aircraft being grounded.